Job cuts this month were down 18 percent from February, according to outplacement firm Challenger, Gray and Christmas.

In its monthly report, the firm says employers announced plans to reduce payrolls by 41,528 in March. That's down 39 percent from the same month a year ago.

The report also says employers have announced less than 131,000 job cuts through the first quarter, 28 percent fewer than the same three-month period a year ago and the lowest for any first-quarter since 1995.

But the news isn't so good for the government-sector. Planned job cuts announced by government and nonprofit organizations increased 17 percent this month as cities and states begin to address massive budget deficits.