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The number of people in work has reached a record high of almost 30 million, according to figures released by the Office of National Statistics.
Average earnings increased by 0.7% in the year to September, 0.1% down on the previous month.
Unemployment fell by 48,000 between July and September to 2.47 million, official figures showed today.
The number of people claiming jobseeker's allowance last month fell by 41,700 to 1.31 million, the Office for National Statistics said.
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David Cameron says his economic plan is "on track" despite a Bank of England admission that interest rates could rise sooner than expected.
Today's growth forecast may seem to be good news for the Coalition, but the increasing cost of living could cause problems at the polls.