* Strong U.S. jobs report drives speculator buying

* ICE inventories drop steeply amid Dec contract delivery

* Speculators continue to trim small net short stance -CFTC

NEW YORK, Dec 6 (Reuters) - Cotton futures jumped to a one-month high on Friday as buy-stops fueled gains seen on strong economic data, another week of solid U.S. weekly export sales, and dwindling exchange inventories.

The benchmark March cotton contract on ICE Futures U.S. closed up 1.56 cents, nearly 2 percent, at 80.41 cents a lb in the second-month's biggest one-day rally since August.

The close above 80.01 cents a lb lifted the daily trading limit to 4 cents a lb above or below the previous day's settlement from 3 cents a lb previously, according to an ICE statement on Friday.

U.S. employment data showed the jobless rate fell to a five-year low, sending cotton prices to technical resistance at a one-month high of 80.52 cents.

Gains accelerated on buy stops and renewed speculator interest as the cotton market awoke from the sleepy volumes and the tight range it has been locked in during recent weeks.

Weekly U.S. government data showed that the noncommercial dealers continued to trim a small net short position in cotton futures and options in the week ended Dec. 3 as open interest languished at low levels.

Prices also gained on a precipitous drop in ICE inventories during the week amid the December contract delivery period.

Certified stocks totaled 94,361 bales on Thursday, down from more than 225,000 at the start of the week, according to the most recent exchange data compiled by Reuters.

"Given the strong cash (price) that is currently being paid, it is unlikely that the certified stock will grow again any time soon," Peter Egli, director of risk management for British-based merchant Plexus Cotton Ltd, said in a report.

He said that the day's strong technical break-out was a sign that prices have hit their seasonal lows.

U.S. weekly export sales this week were seen as solid, though down from recent high levels.

Prices also found support after the market did not crater following the start of China's state reserve auctions last week, dealers said.

Speculation that the sales would overwhelm the world's top textile market with supplies pressured prices 18 percent from August highs near 94 cents.

The December contract finished up 1.56 cents, or 2 percent, at 79.38 cents a lb ahead of its Friday expiry. (Reporting by Chris Prentice; Editing by David Gregorio)