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Today’s official figures revealed that the number of people in work had increased to 29.73 million, a record figure, with 12,000 fewer people claiming benefits.
There is a mixed picture, however, with youth unemployment rising by 11,000 in the past month.
ITV News Economics Editor Richard Edgar reports:
New figures released show that there has been an increase in the number of unemployed people in Cumbria and southern Scotland.
Over the past month the number out of work in Dumfries and Galloway went up by 188 to 3542 which is 3.9%.
In the Borders the jobless figure of 2102 is up by more than 100 and stands at 3%.
Unemployment in Cumbria has risen in the last month to 2.9%.
There are 8,982 people claiming Jobseeker's Allowance - that is almost 550 more than December.
Secretary of State for Work and Pensions Iain Duncan Smith has said that the recent employment figures are positive with unemployment figures dropping and those "never expected to work, sickness benefits, lone parents - they're now going back to work."
The number of unemployed people in Wales rose in the last three months of 2012, to reach 127,000.
Between October and December, 6,000 more people were out of work, bringing the unemployment rate to 8.6 percent.
Wales is suffering compared to the UK as a whole, where the jobless figure fell in the final quarter, to reach an unemployment rate of 7.8 percent.
The Office of National Statistics (ONS) have produced a short Q&A video on today's Labour Market Statistics:
The unemployment rate was 7.8% for October to December 2012, down 0.1% from July to September 2012 and down 0.6% from a year earlier. This chart from the Office for National Statistics shows the unemployment rate for those aged 16 and over for the last five years.
Unemployment fell by 14,000 between October and December to 2.5 million, official figures showed today.
The number of people claiming jobseeker's allowance last month fell by 12,500 to 1.54 million, said the Office for National Statistics.
Average earnings increased by 1.4% in the year to December, 0.1% down on the previous month.
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