US President Barack Obama Friday welcomed a downtick in the unemployment rate to 8.2 percent, despite a slowdown in overall job creation, but said there was more work to do to revive the economy.

"We welcome today's news that our businesses created another 121,000 jobs last month and the unemployment rate ticked down," Obama said, but warned there would still be "ups and downs" along the road to recovery.

The economy created 120,000 jobs in March, much lower than the 200,000 forecast by economists.

The unemployment rate dipped slightly from 8.3 percent to 8.2 percent, according to Labor Department figures.

Despite welcoming the drop in the unemployment rate, Obama, who is relying on an improving economy as he campaigns for a second term, also struck a note of caution.

"But it's clear to every American there will still be ups and downs along the way and we have got a lot more work to do."