The Office for National Statistics (ONS) released its labour market data on Wednesday. The U.K. unemployment rate fell to 5.4% in the June to August quarter from 5.5% in the May to July quarter. It was the lowest reading since the second quarter of 2008.
Analysts had expected the unemployment rate to remain unchanged at 5.5%.
"Today's fall in unemployment has more than outstripped the recent rises, leaving unemployment at its lowest level since mid-2008. Meanwhile, employment continues to grow with the employment rate now at its highest since records began in 1971," ONS labour market statistician, Nick Palmer said.
The claimant count rose by 4,600 people in September, missing expectations for a decline by 2,100, after an increase of 1,200 people in August.
U.K. unemployment in the June to August period dropped by 79,000 to 1.7 million from the previous quarter.
Average weekly earnings, excluding bonuses, climbed by 2.8% in the June to August quarter, missing expectations for a 3.0% rise, after a 2.9% gain in the May to June quarter.
Average weekly earnings, including bonuses, rose by 3.0% in the June to August quarter, missing expectations for a gain of 3.1%, after a 2.9% increase in the May to June quarter.
The Bank of England monitors closely the wages growth it considers when to start hiking its interest rate.