(From cnbc.com) The number of planned layoffs at U.S. firms fell in March, despite continued downsizing in the public sector, a report said Wednesday. Employers announced 41,528 planned job cuts this month, down 18 percent from the 50,702 cuts announced in February, according to the report from consultants Challenger, Gray & Christmas.

The March figure was down 39 percent from a year ago, when 67,611 job cuts were announced, the report said.

Overall, 130,749 job cuts were announced in the first three months of the year, marking the lowest rate of downsizing since 1995, when employers announced 97,716 first-quarter job cuts, Challenger said.

Announced first-quarter job cuts for 2011 were also down 28 percent compared with the same period of 2010, when there were 181,183 planned cuts, the report said.

Government has led job reduction this year, with 19,099 planned cuts in March—the highest in 12 months, the report said.

Read more here: Planned Layoffs Hit Lowest Level in 16 Years