* ILO jobless rate rises to 7.9 percent, highest since Nov 1996
* Weakest growth in earnings ex-bonuses on record
* Unemployment set to continue climbing ahead of election
By Fiona Shaikh and Christina Fincher
LONDON, Sept 16 (Reuters) - Britain's jobless rate climbed to its highest in almost 13 years in July and while there were signs the pace of layoffs may be slowing, analysts cautioned dole queues could lengthen for some time yet.
The number of Britons out of work rose by 210,000 to 2.47 million in the three months to July, official data showed on Wednesday. That took the jobless rate up to 7.9 percent, the highest since November 1996.
Unemployment is a lagging indicator and policymakers have warned it will continue to rise even as the economy emerges from recession.
Some expect the jobless total to hit three million next year, bad timing for Prime Minister Gordon Brown's Labour government which is behind in opinion polls and must call an election by June.
"While the deepest job losses are now probably over, the outlook for the labour market remains far from encouraging," said Howard Archer, UK economist at Global Insight.
"Doubts and concerns over the strength and sustainability of any recovery are likely to encourage businesses to keep their labour forces as tight as possible."
The number of people claiming unemployment benefit rose by 24,400 in August, roughly the same as in July but less than a quarter of the increases seen at the start of this year.
Just under a quarter of a million people were made redundant in the three months to July, 55,000 fewer than in the previous three months but up 107,000 on the year.
"It does look as though the rate of joblessness will not reach as high a peak as we thought it might have done at the start of the year even though it will remain at high levels for some time to come," said Philip Shaw, economist at Investec.
SUBDUED WAGE GROWTH
Overall, the figures were no worse than expected and the pound ticked higher. However, there were signs that a slowing in the pace of job cuts may have come at the expense of workers' pay packets.
Average earnings growth excluding bonuses fell to 2.2 percent in the three months to July, its lowest since records began in 2001. Including bonuses, wage growth barely kept pace with inflation.
Falling employment and weaker pay growth will put downwards pressure on household incomes and consumer spending.
"Most worrying is the speed with which pay growth is now slowing," said Vicky Redwood, economist at Capital Economics.
"As Mervyn King highlighted yesterday, even if the recession is technically over, it will continue to feel like one for many people for a long time yet."
Bank of England Governor Mervyn King on Tuesday sounded a cautious note about the strength of any recovery in Britain, indicating that monetary policy would remain loose for some time to come.
An impending squeeze on government spending will add to the economic headwinds. Public sector earnings growth is still running at a relatively robust 3.4 percent but could fall sharply next year and beyond.
On Tuesday, Prime Minister Brown told a Trades Union Congress conference that public sector spending will need to be cut to tackle Britain's soaring debt. Unions claimed cuts would prolong the recession and increase unemployment, but all political parties have accepted that there is little alternative ID:nLF445809
(Editing by Stephen Nisbet)