UNEMPLOYMENT has fallen by more than 100,000 to its lowest level in over seven years, new figures have shown.

In the south west there were 14,000 fewer unemployed in the quarter to September, a drop of 3.9 per cent to a total of 110,000. 

Nationally the jobless total was slashed by 102,000 in the quarter to September to 1.75 million - 103,000 fewer than the previous three months and 210,000 down on a year ago.

The number of people in work has continued to increase, to a record high of 31.2 million, 419,000 more than a year ago and up by 177,000 over the quarter.

But the claimant count has increased for the third month in a row, up by 3,300 in October to 795,500, said the Office for National Statistics (ONS).

The figure covers people on Jobseeker's Allowance and those on the out of work element of Universal Credit.

Average earnings increased by 2.5% in the year to September, down by 0.3% on the previous month.

Other figures showed that the number of people classed as economically inactive fell by 22,000 to just under nine million in the latest period, the lowest for more than a year.

The figure includes students, those on long-term sick leave, looking after a relative or who have given up looking for work.

The employment rate has reached 73.7%, the highest since comparable records began in 1971. The record rate for women (69%) is partly due to changes in the state pension age, resulting in fewer retiring between the ages of 60 and 65.

ONS statistician Nick Palmer said: "These figures continue the recent strengthening trend in the labour market, with a new record high in the employment rate and the unemployment rate still at its lowest level since spring 2008.

"Earnings continue to grow, albeit the rate for regular pay has fallen back a little from recent months."

The number of job vacancies fell by 5,000 over the last quarter to 736,000, while self-employment has increased by 30,000 to 4.5 million.

The number of people working part time wanting a full time job has fallen by 30,000 to 1.2 million.

The number of non-UK nationals working in this country has increased from 986,000 in 1997 to 3.2 million now. The increase reflects the admission of several new member states to the European Union.

Non-UK nationals from the EU working in this country increased by 324,000 to 2.02 million over the past year, while the figure for non-UK nationals from outside the EU was little changed at 1.2 million.

The UK's unemployment rate has fallen by 0.3% to 5.3%, compared with an EU average of 9.3%. The highest rates are in Greece (25%) and Spain (21.6%) while the lowest is in Germany (4.5%).

Employment Minister Priti Patel said: "Employment is at a record-breaking high, and wages have continued to grow strongly, demonstrating that this Government is delivering for hard-working people.

"With two million more people in work since 2010, the unemployment rate at its lowest in seven years, and the number of people on one of the main out-of-work benefits down by a million since 2010, it is clear that this Government is transforming lives for the better, and creating the higher wage, lower welfare society that British people want to see.

"But this growth is only one part of the story, because our one-nation approach involves a commitment to provide opportunity and security for everyone across the country."

The number of hours people worked on average fell by 0.2 a week to 31.9 in the quarter to September from the three months to June.

More than a million fewer hours were worked in total, although the figure was 7.3 million more than a year ago and 68 million higher than in 2010.

Dr John Philpott, director of The Jobs Economist, said: "Most of the rise in employment in the latest quarter is in part-time jobs with the result that total hours worked in the economy have fallen.

"The number of unfilled job vacancies is little changed and the rate of regular pay growth has fallen to 2.5%, still very good when set against zero consumer price inflation but suggestive of an overall easing in the strength of demand for labour, especially when one also takes account of a slight rise in the number of people claiming unemployment-related welfare benefits.

"Overall, therefore, while we can continue to take comfort in the general health of the UK employment situation, there is nothing in these latest data to support the kind of 'overheating labour market' narrative that might be used to suggest the Bank of England should start to raise interest rates sooner rather than later."

Matt Whittaker, chief economist at the Resolution Foundation think tank, said: "It is encouraging to see employment rising again after a bumpy few months.

"But the slowdown in the pace of the UK's pay recovery may signal that the rebound enjoyed during much of 2015 has eased.

"The good news is that signs of a return to productivity growth should generate more upward pay pressure. That will be particularly important once inflation starts to rise.

"Despite the positive jobs figures, there is still plenty of scope for further growth. But getting there - and becoming a genuine world leader on employment - will require renewed policy action."

James Sproule, chief economist at the Institute of Directors, said: "It is good news all round in today's jobs figures which are further proof that a vibrant economy is the best route to a vibrant labour market.

"Businesses across the country have powered this recovery and they should rightly be congratulated for creating jobs and raising wages in nearly every sector of the economy."

David Kern, chief economist at the British Chambers of Commerce, said: "This is another strong set of labour market figures with employment rising, unemployment falling and inactivity declining.

"The further fall in youth unemployment is good news but it is still almost three times the national average. While the UK economy remains solid, we can't rest on our laurels when the international background is becoming more uncertain. British businesses need stability, supported by low interest rates for the medium term."

And TUC general secretary Frances O'Grady said: "Pay growth was stronger in the first half of the year, but it has been flat for the last three months. This is especially worrying given that the Government is about to announce severe cuts, which will reduce demand across the economy, making pay growth harder to maintain.

"While private sector wages have made up some lost ground, public sector workers are increasingly falling behind.

"We need a recovery that works for everyone across the country, regardless of which region or sector they work in."