Investors are proceeding cautiously following a government report that the economy lost fewer jobs in December than feared. Stocks are opening slightly lower.

The governmnet said Friday employers cut 524,000 jobs in December, less than economists’ forecast for a loss of 550,000 jobs. The unemployment rate still jumped to 7.2 percent from a revised 6.8 percent in November.

Analysts had expected an unemployment rate of 7 percent.

Further jobs reductions are likely to erode consumer spending, which accounts for more than two-thirds of U.S. economic activity.

In the first few minutes of trading, the Dow Jones industrial average is down 4 points at the 8,738 level. Broader indexes are also slightly lower.