The number of U.S. workers filing new claims for jobless benefits rose more than expected last week, but a surprise narrowing in the trade gap in October suggested the economic recovery was becoming entrenched. Initial claims for state unemployment insurance rose 17,000 to 474,000 last week, the Labor Department said on Thursday, after five straight weeks of declines. Analysts polled by Reuters had forecast claims climbing but only to 460,000. A Labor Department economist said claims had been bumped up by seasonal industries laying people off and by applications that had been held back during the Thanksgiving holiday week. A separate report from the Commerce Department showed the nation's trade deficit in October shrank 7.6 percent to $32.9 billion. Analysts had expected the gap to widen to about $36.8 billion. ''Overall we are in an environment where layoffs are abating but people who were fired are still having a difficult time in finding jobs. The trade deficit is worth a couple of tenths'' for fourth-quarter economic growth, said Tom Porcelli, senior economist at RBC Capital Markets in New York. U.S. stock index futures trimmed gains on the claims data, while the dollar fell against the euro.