Unemployment in the UK fell by 29,000 between September and November to 1.67 million, according to official figures from the Office for National Statistics (ONS).

The claimant count fell by 5,500 in December to 943,100 and average earnings increased by 4.1% in the year to November, unchanged from the previous month.

Jim Murphy, Minister of State for Employment and Welfare Reform, said: "The latest figures provide a picture of a strong labour market - employment up, unemployment down and the numbers on benefits falling. Because of our reforms to the welfare state, more people have been looking for work and more people are taking up jobs.

"The UK already has the highest employment rate of the G8, but we are determined to reach our long-term aim of an 80% employment rate and to break for good the cycle of poverty and benefit dependency."