INSTANT VIEW - Claimant count rise smallest since April 08

LONDON (Reuters) - The number of Britons claiming jobless benefit rose much less than expected last month and by its smallest amount in 18 months, while the number of people in work rose for the first time in over a year, official data showed on Wednesday.

The figures will raise hopes that the worst of the recession

has passed and that unemployment will peak at a lower level than previously feared.

ANALYST COMMENT

ROSS WALKER, UK ECONOMIST, RBS FINANCIAL MARKETS

"Better than expected. A tiny rise in employment which is a surprise. There is some evidence of stabilisation but it remains to be seen just how durable this proves to be.

"It feels both too soon to expect any sustainable increase in total employment and certainly the GDP data suggest that we should still be, under normal circumstances, six or maybe nine months away from that.

"It adds to the sense that the labour market has been significantly more resilient during this downturn. The main explanation for that you can see in the earnings numbers. We have had significant wage restraint.

"There will still be a degree of scepticism over whether we are actually seeing a turning point, but there is at least more evidence of stabilisation."