Applications for U.S. unemployment benefits rose for the first time in three weeks, largely due to a jump in California and suggesting some more softening in the labor market.

Initial unemployment claims rose by 11,000 to 239,000 in the week ended April 8, Labor Department data showed Thursday. The median forecast in a Bloomberg survey of economists was for 235,000 applications.

Continuing claims, which include people who have received unemployment benefits for a week or more and are a good indicator of how hard it is for people to find work after losing their job, fell to 1.81 million in the week ended April 1.

On an unadjusted basis, claims jumped by more than 27,000 to 234,577. California — the epicenter for many tech layoffs in recent months — accounted for more than a third of the increase.

The data can be choppy from week to week, and especially around holidays like Good Friday. The four-week moving average in initial claims, which smooths out some of the volatility, ticked up to 240,000.

The data add to evidence that the labor market is starting to soften after a year’s worth of interest-rate hikes by the Federal Reserve. The Labor Department last week updated its seasonal factors for jobless claims going back to 2018, which boosted applications to a level that’s more aligned with recent layoffs.

Separate data last week showed that there are more people working or seeking a job, and vacancies are dropping. Job openings fell in February to the lowest level since 2021, while labor-force participation rose in March to the highest share in three years. A better balance between labor supply and demand could help ease some wage pressures, and therefore inflation, going forward.

Another report Thursday showed U.S. producer prices fell in March by the most since the start of the pandemic, following data out Wednesday that indicated a moderation in consumer price pressures.