The Department of Labor reported that the number of Americans filing for unemployment claims increased by 21,000 to 211,000 for the week ended 4th March.
According to analysts, the increase is due to seasonal adjustment issues and it remains part of a wider trend of a tightening labour market where employers are holding onto staff.
Despite the rise, Jim Baird, chief life investment officer at Plante Moran Financial Advisors said, "The fact that jobless claims remain near a half-century low reinforces that the labour market remains in good shape.
" Economists expected the claims to be lower, which suggests further progress in a tight labour market with rising employment.
Meanwhile, wage growth remained modest, which could ease concerns that the Federal Reserve will raise interest rates more aggressively to combat inflation.