Washington ? The nation’s unemployment rate fell to 5.6 percent in January, the lowest level in more than two years, as employers stepped up hiring — but not at a brisk enough pace to ease concerns about the prolonged job drought.

Job growth is expected to be a key issue as November’s presidential election nears. The economy has lost more than 2 million jobs since President Bush took office, the worst job creation record of any president since Herbert Hoover.

January’s unemployment rate declined 0.1 percentage point to the lowest level since October 2001, when it was 5.4 percent. Last month’s rate matched the 5.6 percent posted in January 2002, the Labor Department reported Friday.

Companies added 112,000 new U.S. jobs overall, marking the fifth straight month of payroll gains and the largest in three years. But economists had expected a larger increase of 150,000 new jobs or more.

“It is not disastrous news, but it is definitely disappointing,” said Bill Cheney, chief economist at John Hancock Financial Services.

The report sent stocks sharply higher on Wall Street.

Analysts are looking for monthly payroll gains of 300,000 or more for sustained job growth, and the economy remains far from that mark.

About 8.3 million people were unemployed in January, with the average duration of 19.8 weeks without work.

Bush touted the lower unemployment rate while touring the National Targeting Center in Herndon, Va., which provides support for counterterrorism efforts.

“That’s good,” Bush said. “Things are getting better. There is more to do. The economy is growing in strength.”

During the past five months, 366,000 jobs have been added. That includes an upward revision of job growth in December, from 1,000 to 16,000.