"What we've been seeing is the wages have gotten better, which is a really great thing," an expert said.
The unemployment rate fell to 3.4% from 3.5%, hitting a level not seen since before Neil Armstrong stepped on the moon.
Microsoft plans to lay off 10,000 employees as part of broader cost-cutting measures, the company said in a securities filing, making it the latest tech company to reduce staff because of growing economic uncertainty.
Year-over-year inflation fell for the sixth straight month.
The lack of workers risks worsening inflation, which could trigger a recession.