The number of adults without a job fell to 2.34 million in the final quarter of 2013, down 125,000 on the previous month.

The government figures showed unemployment now stands at 7.2 per cent, although analysts at the CIPD said the improvement could be weakening.

Growth in overall employment increased 192,000 on the quarter and 14 million are now in active employment, the highest total since records began.

But average wage rises continue to lag behind at just 1.1 per cent in the 12 months to December 2013.

Employment minister Esther McVey said: “It’s clear that the government’s long-term plan to build a stronger, more secure economy is helping businesses create jobs and get people into work.”

Gerwyn Davies, the CIPD’s labour market adviser, said: “While the immediate jobs outlook remains relatively bright, it looks as though the vast majority of workers will at best experience a standstill in real earnings.”