Official figures show that the number of US workers filing new claims for jobless benefits fell last week.
Separate data showed that inflation remained muted, despite a surge in food costs last month.
Other figures showed that sales of previously-owned homes rose 6.8% to an annual rate of 5.35 million units in March as Americans rushed to take advantage of a tax credit for home buyers.
Initial claims for state unemployment benefits dropped 24,000 to a seasonally adjusted 456,000, the Labor Department said, resuming a downward trend that had been interrupted by the Easter holiday.
While initial claims are still above levels viewed by analysts as in line with job market stability, anecdotal evidence indicates employment is slowly rising. Last month, the economy recorded its largest jobs gain in three years.
In a second report, the department said prices paid at the farm and factory gate increased 0.7% following a 0.6% drop in February on strong food and petrol costs. The Labor Department said 70 percent of the increase in wholesale prices in March was due to a 2.4% jump in consumer foods, the largest rise since January 1984.
