By David Milliken

LONDON, Dec 12 (Reuters) - The number of Britons claiming

unemployment benefits rose less than expected in November and

the number of people in work hit a record high, data showed.

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CLAIMANT COUNT UNEMPLOYED NOV OCT F'CAST

Monthly change -3,000 6,000 (10,100) 7,000

Rate 4.8 4.8 (4.8)

ILO UNEMPLOYMENT AUG-OCT MAY-JULY AUG-OCT 11 F'CAST

Total (mln) 2.510 2.592 2.637

Rate 7.8 8.1 8.3 7.8

Change on qtr -82,000 n/a n/a

KEY POINTS

- Lowest unemployment level since March-May 2011

- Highest employment level since records began in 1971

ECONOMISTS' VIEWS

JAMES KNIGHTLEY, ING

'The UK jobs report shows some reasonably encouraging

newsflow on the labour market.'

'The main disappointment was the fact that despite the gains

in employment, there is no pick-up in wage growth, which remains

at 1.8 percent, year on year.

'The fact that UK employment is rising, consumer confidence

is up and anecdotal evidence of retail sales haven't been too

bad, offers some hope that the domestic situation in the UK is

stabilising.

'The BoE's Funding for Lending Scheme is also showing some

tentative signs of supporting the economy, with borrowing costs

edging lower. As a result, it seems the main risks for the UK

are currently external through the US fiscal cliff and Eurozone

worries, which the Bank of England can do little to offset other

than subtly try and talk down sterling.'

ROB WOOD, BERENBERG BANK

'Close to expectations, but I think the bottom line is that

employment growth is slowing. It Has slowed a bit over the past

few months and weak UK growth may be beginning to catch up with

the labour market.'

'I think they confirm the picture of stagnation heading into

Q4. With an economic contraction on the cards for the fourth

quarter, and it looking weak in Q1, we'll probably see some more

slowing in the labour market.'

'Earnings growth, which slowed and was below consensus

expectations (was) again a bit of downside news'

'The BoE were expecting a weak fourth quarter anyway so

maybe not too much news for them, but as things to continue to

weaken further, then it makes a move more likely.'

(Reporting by UK economics team)

Keywords: BRITAIN ECONOMY/

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