Unemployment fell in the three months to November last year, government figures show.
Data from the Office of National Statistics (ONS) showed that the number of people of working age out of work fell by 0.1 per cent in the quarter to 5.5 per cent, maintaining the relatively flat rates seen throughout much of last year.
Overall employment rose by 14,000 in the quarter to November, continuing an increase in the first 11 months of 2006 of 274,000 jobs mainly caused by the continued influx of foreign workers from eastern European countries.
"The trend in the employment rate is flat," the ONS said.
"The upward trend in the unemployment rate is levelling off and there has been another fall in the number of people claiming jobseeker's allowance benefit."
Jim Murphy, employment and welfare reform minister, said the figures were "good news".
"The UK already has the highest employment rate of the G8, but we are determined to reach our long-term aim of an 80 per cent employment rate and to break for good the cycle of poverty and benefit dependency," he said.
"Lone parents, older workers and incapacity benefit claimants are now getting the chance to work and contribute."
Numbers of economically inactive people of working age rose over the quarter by 74,000, however.