The Office for National Statistics (ONS) released its labour market data on Wednesday. The U.K. unemployment rate fell to 5.1% in the September to November quarter from 5.2% in the August to October quarter. It was the lowest reading since three months to October 2005.
Analysts had expected the unemployment rate to remain unchanged at 5.2%.
The claimant count slid by 4,300 people in December, beating expectations for a rise by 2,500, after a decrease of 2,200 people in November. November's figure was revised down from a 3,900 increase.
U.K. unemployment in the September to November period dropped by 99,000 to 1.68 million from the previous quarter.
The employment rate was 74%. It was the highest reading since 1971.
Average weekly earnings, excluding bonuses, climbed by 1.9% in the September to November quarter, beating expectations for a 1.8% rise, after a 2.0% gain in the August to October quarter.
Average weekly earnings, including bonuses, rose by 2.0% in the September to November quarter, missing expectations for a gain of 2.1%, after a 2.4% increase in the August to October quarter.
The Bank of England monitors closely the wages growth it considers when to start hiking its interest rate.