In March, the country's businesses generated 303,000 new jobs, exceeding experts' expectations and showing renewed strength in the labor market.
The unemployment rate fell from 3.9% to 3.8%, remaining below 4% for 26 consecutive months. The sectors with the largest job gains were education and health services, government, leisure and hospitality, and construction.
Despite new job creation, wage growth was mild, with average hourly wages up 4.1% from a year earlier. Federal Reserve policymakers are watching the economy to determine when to cut interest rates.
Despite previous interest rate increases to control inflation, the economy has continued to grow steadily and employers have continued to hire at a healthy pace.
The Fed is expected to cut rates three times this year, but is awaiting more inflation data.