The unemployment rate in the United States fell to a new two-year low in March of 8.8%, from 8.9% in February.
It was the fourth monthly fall in a row. The unemployment rate has fallen by a percentage point during the last four months.
Employers created 216,000 jobs in March, higher than market expectations.
Most were in the private sector - in factories, shops and health care. The BBC reports they new offset job losses in the public sector.
Other economic data showed a slight dip in manufacturing in March, although the report was seen as broadly positive.
The Institute for Supply Management's index of national factory activity dipped to 61.2 last month from 61.4 in February.
February's rate was the highest since May 2004. Any reading above 50 indicates growth.
Stock markets in the US and Europe were boosted by the news. London, Paris and Frankfurt all closed with gains of more than 1.5%, while the Dow was up 1% by late afternoon.
