New data shows New Jersey added 1,900 jobs last month and the unemployment rate fell to 4.1 percent from 4.2 percent.
Bureau of Labor Statistics preliminary reports announced on Thursday show the state jobless rate was the lowest since 2001.
The Treasury department's chief economist, James Wooster, says the monthly report shows the state's labor market is on a positive track.
Republican Gov. Chris Christie has been touting the data and arguing the declining rate shows his administration's policies have worked.
Christie is term-limited and leaves office next year. He took over the state in midst of the recession in 2010 when the state's unemployment rate was nearly 10 percent.
The federal unemployment rate in March was 4.4 percent.