INSTANT VIEW - Claimant count spikes, jobless above 2 mln

LONDON (Reuters) - The number of people claiming jobless benefit jumped by the biggest amount since 1971 last month and the wider measure of unemployment rose above 2 million for the first time since 1997 in the three months to January.

The Office for National Statistics figures on Wednesday also showed average earnings including bonuses in the three months to January grew at the weakest annual rate since records began in 1991. The single month annual rate actually fell -- the first fall on record.

ANALYSTS' COMMENT

HOWARD ARCHER, CHIEF ECONOMIST GLOBAL INSIGHT

"The unemployment data are truly awful, heightening fears about the potential depth and length of the recession.

"Unemployment smashed through the 2 million barrier with ease on the International Labour Organisation measure and it seems set to head up towards 3 million pretty rapidly over the coming months as the economy contracts sharply and struggling businesses look to contain their costs.

"Earnings growth seems likely to fall back significantly in 2009 given that unemployment is soaring, inflation is retreating sharply, inflation expectations have plunged and companies are desperate to keep down their costs."

ADAM CHESTER, ECONOMIST, HBOS

"A big part of the job losses are going to start coming through over the course of 2009. A lot of the economic data, on the manufacturing side particularly, has been very weak and we are seeing that in the fall in net trade and global trade and hitting manufacturing employment.