(NewsNation) — The number of Americans applying for unemployment benefits slightly increased last week but layoffs remain at historic lows.

The latest report released by the Labor Department Thursday shows that the number of people filing for jobless benefits increased by 14,000 to 202,000. The previous week’s total number of Americans applying for unemployment benefits fell to its lowest level in 52 years to 187,000. First-time applications for jobless aid generally track the pace of layoffs.

The four-week average for claims, which compensates for weekly volatility, fell to 208,500 from 212,000 the previous week. In total, 1,307,000 Americans were collecting jobless aid for the week ending March 19, the fewest since December 1969.

The unemployment rate dropped to 3.8%, from 4% in January, extending a sharp decline in joblessness to its lowest level since before the pandemic erupted two years ago.

U.S. businesses posted a near-record level of open jobs in January — 11.3 million — a trend has helped pad workers’ pay and added to inflationary pressures.

The government will issue the March jobs report Friday. Economists estimate that employers added a healthy 478,000 jobs last month and that the unemployment rate dipped from 3.8% to 3.7%, according to data provider FactSet.

The Federal Reserve launched a high-risk effort two weeks ago in an effort to tame the worst inflation since the early 1980s, raising its benchmark short-term interest rate and signaling up to six additional rate hikes this year. Earlier this month, the government reported that consumer inflation jumped 7.9% over the past year, the sharpest spike since 1982.

The Fed’s quarter-point hike in its key rate, which it had pinned near zero since the pandemic recession struck two years ago, marks the start of its effort to curb the high inflation that followed the recovery from the recession. The rate hikes will eventually mean higher loan rates for many consumers and businesses.

The central bank’s policymakers have projected that inflation will remain elevated at 4.3% through 2022.