Britain's labour market remained largely flat in the final quarter of last year.
The unemployment rate, a percentage of the population of working age who are unemployed, fell by 0.1 per cent to 5.5 per cent in December.
Meanwhile the government's preferred measure, the inactivity rate for people of working age, was unchanged on the quarter but down 0.4 per cent on the year.
"The risk of higher wage settlements is reinforced by evidence that the labour market is currently tightening as recent sustained, healthy growth is now generating sufficient jobs to cater for the rapidly expanding labour force," Howard Archer of research firm Global Insight commented.
Demand in the labour market grew slightly; the number of job vacancies rose to 607,900 for the three months to January, up 7,300 on the previous quarter.
Employment minister Jim Murphy said that today's figures told "a strong story".
"Our reforms to the welfare state are working: more people are coming off benefits, looking for work and taking up jobs," he said.
The claimant count fell by 13,500 to 925,800 in January, its sixth drop in the last seven months.
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