Jobless claims surge

Government says 637,000 people filed for first-time unemployment benefits last week. Continuing claims at all-time high for 15th week in a row.

NEW YORK (CNNMoney.com) -- The number of people filing initial claims for unemployment benefits rose more than expected last week, while the number of people filing claims on an ongoing basis rose to a record high for the 15th straight week, according to a government report released Thursday.

A total of 637,000 people filed new claims for jobless benefits in the week ended May 9, the Labor Department said. That's an increase of 32,000 from an upwardly revised 605,000 in the previous week.

The tally was higher than expected. Economists surveyed by Briefing.com had forecast 610,000 initial claims.

The 4-week moving average of initial claims, which smoothes out volatility in the measure, rose 6,000 to 630,500.

Thursday's report could reflect filings by Chrysler employees affected by the automaker's declaration of bankruptcy last month, analysts said.