Weekly jobless claims unchanged at 217,000
Continuing claims increase 8,000 to 1.906 million
Fourthquarter productivity growth unrevised
Trade deficit widens 5.1 to 67.4 billion in January

WASHINGTON, Reuters The number of Americans filing new claims for unemployment benefits was unchanged last week as the labor market continued to gradually ease, which could give the Federal Reserve room to wait before cutting interest rates this year.

Despite other data on Thursday showing a sharp widening in the trade deficit in January as businesses boosted imports of computers, semiconductors, motor vehicles and parts, economic growth in the first quarter is expected to slow only marginally as the resilient labor market underpins consumer spending.

New layoffs are relatively modest and signal that no immediate deterioration of labor market conditions is headed our way, said Christopher Rupkey, chief economist at FWDBONDS in New York. The trade winds are not blowing as favorably in the economys direction at the start of the year, but the consumer is in good shape and their spending is expected to add more to growth later in the first quarter.

Initial claims for state unemployment benefits held at a seasonally adjusted 217,000 for the week ended March 2, the Labor Department said. Economists polled by Reuters had forecast claims unchanged at 215,000 in the latest week.

Claims in New York surged by 14,275 and filings in California increased 6,150. There were also large…