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Unemployment figures have defied conventional wisdom about the economy.
The latest numbers show the biggest quarterly fall for more than a decade. Within that was a fall in youth unemployment too.
Business Editor Laura Kuenssberg reports:
Prime Minister David Cameron told MPs:
He said there was clearly "more to do" through the Government's criticised Work Programme system to deal with "stubbornly high" long-term jobless rates.
Mark Hoban, the Minister for Employment has told ITV News that, "these are good figures."
He said, "more and more people are in work, if you look at the number of people who have been unemployed for six months or longer - that number has fallen by 62,000."
The number of those classed as economically inactive, including those looking after a family, on long-term sick leave or who have given up trying to find a job, increased by 60,000 to 9.07 million.
The number of unemployed women fell by 21,000 to 1.08 million compared with a fall of 61,000 among men.
A total of 449,000 people have been out of work for more than two years, up by 6,000, while 904,000 have been jobless for more than a year, unchanged from the previous quarter.
Private sector employment rose by 65,000 in the latest quarter to 23.8 million, the highest on record.
The number of people claiming jobseeker's allowance last month fell by 3,000 to 1.58 million, said the Office for National Statistics.
While average earnings of those in work increased by 1.8% in the year to September, unchanged on the previous month.
The Office for National Statistics (ONS) has said that youth unemployment rose marginally in the third quarter of 2012, with the employment rate for those aged from 16 to 64 was 71.2%, up 0.1 on May to July 2012 and up 0.9 on a year earlier.
The ONS said there were 29.60 million people in employment aged 16 and over, up 40,000 on May to July 2012 and up 499,000 on a year earlier.
Unemployment fell by 82,000 between August and October to 2.51 million, official figures showed today.
Youth unemployment is forecast to top the 1m mark again next year as the UK heads for a triple dip recession, reports the Telegraph.