More Americans than forecast filed first-time claims for unemployment insurance last week, mainly reflecting a jump in applications related to the Chrysler LLC bankruptcy. Initial jobless claims rose by 32,000 to 637,000 in the week ended May 9, from a revised 605,000 the prior week, the Labor Department said today in Washington. A ``good part'' of the jump was from states reporting an increase in auto-related claims, a spokesman for Labor said without providing a more precise estimate. The total number of people collecting unemployment insurance surged in the prior week to 6.56 million, setting a record for the 15th straight week, and indicating companies are still not hiring. The lack of jobs threatens to restrain consumer spending, the biggest part of the economy, and delay a return to growth that economists project for later this year. ``The labor market is still very weak,'' Robert Mellman, an economist at JPMorgan Chase & Co. in New York, said before the report. Still, ``we should probably not pay too much attention'' to the jump in claims last week because it was driven by the Chrysler layoffs, he said. ``Most auto workers sign up fairly quickly.'' Economists, including those at JPMorgan, said claims would jump in part due to layoffs at Chrysler LLC, which filed for bankruptcy on April 30. Auburn Hills, Michigan-based Chrysler on May 1 idled its 22 U.S. plants, which had about 26,800 hourly workers, and auto parts suppliers also are likely to cut jobs as they shut factories. `Gradual Improvement' ``We expect declines in employment through the end of the year, though the pace of layoffs is slowing,'' Mellman said. ``We're looking for a gradual improvement.'' Jobless claims were forecast to rise to 610,000 from 601,000 initially reported for the prior week, according to the median projection of 38 economists in a Bloomberg News survey. Estimates ranged from 580,000 to 650,000. Claims will probably be influenced by more auto shutdowns in coming months. General Motors Corp., facing a U.S.-imposed June 1 deadline to restructure or file for bankruptcy, said last week it plans to idle, partially or completely, as many as 23 stamping, engine and transmission plants during the period through July. The temporary closings are in conjunction with GM's plan to idle 13 assembly plants for as long as 9 weeks in the same period, announced last month. Wholesale Prices A separate report from Labor showed prices paid to U.S. producers rose in April as food costs jumped, pushing back risks that extended price declines may take root in the economy. The 0.3 percent increase followed a drop of 1.2 percent in March. Excluding fuel and food, so-called core prices rose 0.1 percent, as anticipated. The four-week moving average of initial claims, a less volatile measure, rose to 630,500 from 624,500. Today's Labor report showed the unemployment rate among people eligible for benefits, which tends to track the jobless rate, climbed to 4.9 percent in the week ended May 2, the highest level since 1982, from 4.8 percent. These data are reported with a one-week lag. Twenty-four states and territories reported an increase in new claims for the week ended May 2, while 29 reported a decrease. Initial jobless claims reflect weekly firings and tend to rise as job growth -- measured by the monthly non-farm payrolls report -- slows. Payroll Slump The economy has lost 5.7 million jobs since the recession began in December 2007, the most in any economic slump since the Great Depression. Payrolls fell by 539,000 in April and the jobless rate climbed to 8.9 percent, the highest level since 1983, Labor figures showed last week. Continental Airlines Inc., the fourth-largest U.S. carrier, yesterday said it will cut about 500 reservations jobs and shut a Florida call center as more travelers book their own flights. Employees at the Tampa unit will be offered benefits including an early-exit severance program. ``We must make these changes to adapt to changing customer preferences,'' Vice President Martin Hand said in a statement on the Houston-based company's Web site.

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