Employers added fewer jobs than forecast in December and the unemployment rate dropped to 9.4 percent, a sign a labor-market recovery will take time to develop.

Payrolls increased 103,000, compared with the median forecast of 150,000 in a Bloomberg News survey, Labor Department figures showed today in Washington. November employment rose a revised 71,000, more than previously estimated. The jobless rate fell to the lowest level since May 2009, reflecting gains in jobs and fewer people in the labor force.

Faster job growth is needed to keep consumer spending accelerating and ensure the economic recovery becomes self- sustaining. Payrolls need to grow about double December’s pace to make further progress in lowering the jobless rate, one reason why Federal Reserve policy makers have reiterated they will stick to their plan for more monetary stimulus.

Construction payrolls declined by the most since May and professional and business services added the fewest number of jobs in five months.

Overall payroll estimates of 78 economists ranged from 98,000 to 240,000. The median climbed from 140,000 at the start of the week after projections from ADP Employer Services showed companies boosted employment by 297,000 workers last month.

The November figure was revised from an initially reported gain of 39,000.

The unemployment rate was forecast to fall to 9.7 percent, according to the median prediction of 73 economists surveyed. Estimates ranged from 9.5 percent to 9.9 percent.

For all of 2010, the jobless rate averaged 9.6 percent, the highest since 1983 and up from 9.3 percent a year earlier. With today’s report, the Labor Department revised figures from its household survey used in calculating the unemployment rate going back five years. Benchmark revisions to the payroll data will be announced in February.

Private payrolls, which exclude government agencies, rose by 113,000 last month after a 79,000 November gain.

Manufacturing payrolls rose by 10,000 in December. Economists had projected an increase of 5,000.

(Read More: Bloomberg News)