The number of Americans filing for unemployment benefits for the first time climbed more than expected last week, signaling potential softening in the labor market even as inflation pressures lingered.

The Labor Department's weekly report, released Thursday, showed initial jobless claims increased to a seasonally adjusted 219,000 for the week ending April 4, up 16,000 from the prior week's revised figure of 203,000. Economists had anticipated 210,000 claims, making the actual reading a surprise upside.

The four-week moving average of initial claims stood at 209,500, a level that remains historically low. Continuing claims, which track the total number of people receiving benefits, fell to 1,794,000 for the week ending March 28, the lowest four-week average since June 2024.

Despite the uptick, claims are well below the long-term average of about 360,000 since 1967 and far from pandemic highs. The labor market has shown resilience, with the unemployment rate holding steady at 4.3% in March.

Meanwhile, inflation remained above the Federal Reserve's 2% target. The Consumer Price Index rose 2.4% year-over-year in February, matching January's pace after declining from 2.7% late last year. Producer prices jumped 3.4% year-over-year in February, with core PPI at 3.9%, the highest in 13 months.

Personal Consumption Expenditures (PCE) prices, the Fed's preferred gauge, also ticked higher in February, as reported Thursday by the Bureau of Economic Analysis. March CPI data, due Friday, is forecast to show annual inflation climbing to 3.3%, the highest since May 2024.

The combination of rising jobless claims and persistent inflation complicates the outlook for Federal Reserve policy. Officials have held rates steady amid cooling but sticky price growth, with recent labor data suggesting no rush for cuts.

Claims have fluctuated recently: 202,000 for the week ending March 28, down from 211,000 prior, before this week's jump. The insured unemployment rate held at 1.2%.

Analysts noted the labor market's stability despite the increase, with claims still in a narrow range seen over recent years.