New figures out today show employment is at the record level of 29.1m, the number of people claiming Jobseeker's Allowance is down by 12,800 and the number of vacancies remain high at 668,800.

The Office for National Statistics said unemployment dropped by 5,000 in the quarter to August to 1.65m. Meanwhile, average earnings rose by 3.7% during the quarter, beating expectations of a 3.6% rise.

The figures reveal that the employment rate is 74.4%, down 0.1% on the quarter, down 0.3% on the year.

Minister for employment and welfare reform, Caroline Flint, says: "The figures, combined with the involvement of over 100 major companies in the Local Employment Partnerships (LEP) scheme, mean those who are able to work can find a job. Those who 10 years ago would have been left behind now have the chance to clock in, working for themselves and providing for their families.

"The challenge for us is to find new ways of helping people develop the skills and confidence they need to take advantage of these opportunities. The companies involved in LEPs have shown their commitment to British workers and we will give people the support they need to get into work. I believe this can play a huge part in tackling the legacy of worklessness that still exists in our towns and cities.”