DATA SNAP: UK Claimant Count Rises Less Than Expected In Sep

LONDON -- The number of people claiming unemployment benefit in the U.K. hit its highest level for more than 12 years in September, but the monthly rise was smaller than expected in a sign the labor market may be over the worst, official figures showed Wednesday.

The number of people claiming Jobseeker's Allowance benefit in September totaled 1.63 million, the highest level since April 1997, the Office for National Statistics said.

But the claimant count rose 20,800 in September, compared with a revised 23,000 gain in August, marking the smallest monthly increase since May last year.

The claimant count rate rose 0.1 of a percentage point from August to 5.0% in September, the data showed.

Economists were expecting the claimant count to increase 25,000 and the rate to rise to 5.1% in September, according to a Dow Jones Newswires survey last week.

"There is some evidence of an easing in the rate of deterioration in the labor market," an ONS statistician said.

The International Labor Organization rate of unemployment was 7.9% for the three months to August, up 0.3 percentage points from the previous three months. Unemployment totaled 2.47 million, up 88,000 from the figure for the three months to May.

However, compared to the three months to July, ILO unemployment dropped 1,000, the first drop since the three months to May 2008, the ONS said.