The improvement in the U.S. contrasts with some of the other major economies. Joblessness in the 17-nation euro area increased to 10.9 percent in March, the highest since April 1997, from 10.8 percent a month earlier, data showed this week.
United Parcel Service Inc., the world's largest package- delivery company, is among firms taking note.
"During the quarter, the most positive news has come from the U.S. where indications of economic rebound are evident," Scott Davis, chief executive officer of UPS, said on an April 26 conference call. "Retail sales have grown faster than expected and the employment environment has improved. On the other hand, economies in other parts of the world continue to face challenges."
Cost Cutting
At the same time, cost-cutting is prompting reductions at some companies. H&R Block Inc., the biggest U.S. tax preparer, plans to reduce 350 jobs and close about 200 company-owned offices. AMR Corp.'s American Airlines this month said it will eliminate 1,200 airport agent, baggage and cargo jobs as part of a bankruptcy restructuring plan to trim annual labor spending.
"Labor market conditions have improved in recent months; the unemployment rate has declined but remains elevated," Fed policy makers said in an April 25 statement. The group "expects economic growth to remain moderate over coming quarters and then to pick up gradually," and "anticipates that the unemployment rate will decline gradually."
The central bankers last month repeated their plan to hold borrowing costs low through late 2014 to spur growth.
Fed officials also cut forecasts for the jobless rate, to an average 7.8 percent to 8 percent in the fourth quarter from a January projection of 8.2 percent to 8.5 percent, according to central tendency estimates released April 25.