30 million people in jobs as employment hits highest level since records began

The jobless total was cut by 32,000 in the three months to January to 1.61 million, while the numbers on Jobseeker's Allowance fell by 2,800 last month to 793,500.

It was the 17th consecutive monthly fall in the claimant count, although it was the smallest reduction since October 2006, the Office for National Statistics said.

Employment levels increased by 166,000 over the latest quarter to reach 29.46 million - the highest figure since comparable records began in 1971.

The number of people employed in the public sector was 5.78 million, up by 7,000 on the quarter but 23,000 down on the year.

The number of jobs also reached a record high, up by 13,000 in December to 31.62 million - the highest figure since 1959.

But the loss of manufacturing jobs continued, down by 28,000 in the three months to January to 2.9 million, which is the lowest for 30 years.

Other data showed a fall in the number of people classed as "economically inactive", down by 68,000 in the quarter to January to 7.89 million.

But the figure - which counts people looking after a relative or on long-term sick leave as well as those who have given up looking for a job - was only 2,000 lower than a year ago and still equals a fifth of the UK's working population.

The new statistics also show that average earnings increased by 3.7 per cent in the year to January, down by 0.1 per cent from the previous month.

Excluding bonus payments the figure was unchanged, also at 3.7 per cent.

The number of vacancies across the UK reached a seven-year high of 678,500 last month, while 110,000 workers were made redundant in the three months to January, the lowest number since 1995.

There were 4,000 working days lost through industrial disputes in January, the lowest since last April.

Employment Minister Stephen Timms said: "Once again this is a strong set of figures. There have never been more people in work in the UK.

"Our employment rate of 74.8 per cent continues to be above that of most other countries within the EU."

But Mr Timms admitted: "There are still small areas where employment remains low."

Efforts were being made to move people in these areas off benefits and into work, he said.

The Department for Work and Pensions said that between May 1997 - when Labour came to power - and May 2007, the number of people on the main out-of-work benefits fell by 1,052,600.

Taking account of more up-to-date claimant count information, the fall is calculated to be 1,137,000.