After hitting a three-month low in the prior week, first-time claims for state unemployment benefits rose due to layoffs in the auto sector, the Labor Department reported Thursday. The number of initial claims in the week ending May 9 rose 32,000 to 637,000. It's the highest level since mid-April. Economists had been expecting claims to rise. They estimated that about 27,000 Chrysler employees are eligible to file claims in the wake of the company's bankruptcy filing. Claims in the previous week were revised to a decrease of 30,000 to 605,000 compared with the initial estimate of a drop of 34,000 to 601,000. The four-week average of initial claims rose 6,000 to 630.500. Meanwhile, the number of Americans receiving state jobless benefits rose to/a record 6.56 million in the week ending May 2. The four-week moving average of continuing claims rose 128,750 to 6.34 million. The insured unemployment rate rose to 4.9%, the highest level in this cycle.
