Unemployment in the UK has fallen to a 17-year low, but the 22nd successive monthly fall was marred by an unexpected rise in wages.

The seasonally adjusted total for December fell by 28,700 to 1,411,200, 5% of the workforce, the lowest level since July, 1980.

Most of last month's fall was due to 26,800 men leaving the claimant count and the largest regional reductions were in the south-east, Scotland, London and eastern England. Unemployment was unchanged in Northern Ireland.

The jobless total has fallen by 472,000 over the past year and is 1.57 million lower than the near three million peak in 1992.

The Office for National Statistics said the labour market continued to grow at historically high levels and increased its forecast of falling unemployment to between 20,000 and 45,000 a month compared to its prediction last month of between 15,000 and 35,000.

The unadjusted total, which does not take account of seasonal factors, rose by 3,731 last month to 1,391,380, a rate of 5%.

The good unemployment figures were tempered by an increase in average earnings in the year to November. Earnings rose by 4.75%, a quarter of one percent higher than the October rate, which itself was revised up from 4.25%.

It was the first increase in average earnings since last summer and the highest figure for a year.

The Office for National Statistics said higher bonuses and increased overtime drove the November rise.

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