The number of people out of work in the UK fell by 97,000 to 1.86 million in the three months to December.
The unemployment rate now stands at 5.7% of the adult working population, the Office for National Statistics (ONS) said.
The ONS said the employment rate, or level of people in work, was 73.2%, its joint highest rate.
Average earnings including bonuses were up 2.1% in the quarter compared with a year earlier.
Excluding bonuses, earnings rose by 1.7%.
CPI inflation was 0.5% in December, and new data released on Tuesday showed the rate fell to 0.3% in January, its lowest level since records began.
James Sproule, chief economist at the Institute of Directors (IoD), said wages would continue to rise as competition for talent intensified. “Two-thirds of IoD members [are] planning pay rises at least in line with inflation over the coming months,” he added.
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