The Office for National Statistics released the labour market data on Wednesday. The U.K. unemployment rate fell to 5.7% in the October to December quarter from 5.8% in the three months to September. Analysts had expected the unemployment rate to remain unchanged.
That was the lowest level since August 2008.
The claimant count decreased by 38,600 people in January, exceeding expectations for a drop of 25,200 people, after a decrease of 35,800 people in December. December's figure was revised from a decline of 29,700.
The employment rate rose to 73.2% in the October to December quarter from 73% in the three months to September, the highest rate since the three months to February 2005.
Average weekly earnings, excluding bonuses, climbed by 2.1%.
Average weekly earnings, including bonuses, rose by 1.7%.
Wage growth outpaced inflation for the first time since 2009. Inflation was 0.3% last month.