New unemployment claims beat expectations last week, rising 637,000 as layoffs in the auto industry piled up. The number of continued claims reached another record high for the 15th week. The increase came as a disappointment to optimist who saw the decreasing claims of previous weeks as a potential sign of the recession bottoming out. Chrysler, which filed for bankruptcy on April 30, may have been responsible for up to 27,000 of those new claims; and General Motors, who is closing 13 additional factories, could account for 25,000 new claims.
See "New jobless claims rise more than expected to 637,000 due partly to auto industry layoffs", Christopher S. Rugaber, Chicago Tribune, May 13, 2009