The number of people out of work in the UK has fallen to its lowest total for more than a year. 

Unemployment fell by 49,000 to 2.51m in the three months to September, taking the jobless rate to 7.8% from 7.9%.

The Office for National Statistics (ONS) said that almost all the 49,000 fall was due to a decline in youth unemployment. But the ONS said that the claimant count rose by 10,100 last month to 1.58m, the highest since July.

The Confederation of British Industry (CBI) said that, despite the good news, there was still cause for concern. Neil Carberry, CBI director for employment and skills, says: “It’s encouraging that people are continuing to find jobs and that the unemployment rate is falling. 

“But progress on getting people into work is much slower than we saw earlier in the year, and last month there was a troubling rise in the number of people claiming Jobseeker’s Allowance.”

Gerwyn Davies, labour market adviser at the Chartered Institute of Personnel and Development (CIPD), adds: “Employers have continued to focus on keeping labour costs down and a combination of pay restraint and a higher proportion of part-time and temporary work has enabled them to take on more staff.  

“Despite the positive headline figures, the high proportions of part-time and temporary work suggest that many employers remain cautious about adding to their long-term cost base.”