The rate hit 5.1% in the three months to November, according to the Office for National Statistics (ONS).

The reading means that unemployment is now at its lowest level since the three-month period to October 2005.

But wage growth was slower-than-expected, increasing at its slowest rate since February.

Average weekly earnings, including bonuses, were up 2%, which is below the 2.4% rise of the previous three months, and lower than the 2.1% forecast in a Reuters survey.

Excluding bonuses, average weekly earnings growth slowed to 1.9% in the three months, the ONS said.

The number of people out of work fell by 99,000 to 1.68 million in the three month period, putting the employment rate at 74% – the highest since comparable records began in 1971.

Interest rates

The figures come a day after Bank of England governor Mark Carney ruled out an early rise in interest rates because of the turmoil in the global economy and weaker UK growth.

A sustained improvement in wage growth was one of the factors he said would help the Bank to gauge when to raise rates.

He has previously said he would like to see earnings growth at above 3% a year before rates are increased.

Capital Economics economist Ruth Miller said the figures confirmed an interest rate hike “is still some way off”.

“There still seems very little inflationary pressure coming from the labour market,” she added.