​There has been lots of positivity surrounding the UK's job market this week after it was announced that unemployment has continued to fall once again and wage growth has outpaced inflation at its fastest rate in almost five years.

There has been lots of positivity surrounding the UK's job market this week after it was announced that unemployment has continued to fall once again and wage growth has outpaced inflation at its fastest rate in almost five years.

In the three months leading up to December 2014, the number of people unemployed fell by a further 97,000 – taking the total to 1.86 million which is 5.7% of the working population.

According to the figures from the Office for National Statistics (ONS), this wasn't the only good news surrounding the UK's job market as average earnings (including bonuses) have risen by 2.1% in comparison to the same period the previous year. Excluding bonuses, this figure stood at a 1.7% rise.

In December, total pay was 2.4% higher compared to the same month in 2013 which is the biggest lead over inflation since March 2010. It is thought that wages will continue to rise as competition for good talent intensifies with many companies already planning pay rises in line with inflation over the coming months.

The employment rate for those aged between 16 and 64 for the three months leading up to December was 73.2% which is a joint record high. The last time the UK experienced such high employment rates was a decade ago between December 2004 and February 2005.

The country is also currently experiencing record employment rates for women which is up to 68.5%. It is thought that one of the biggest contributing factors to this is the increase in the state pension age which means that fewer women are retiring between the ages of 60 and 65 and are instead choosing to stay in employment for much longer.

Hailing the news that Britain's unemployment rate is at the joint highest levels since records began in 1971, David Cameron commented:

"I'm not saying we have solved all our problems in the British economy in the last four and a half years but we are on our way."

Experts are predicting that unemployment levels will continue to decrease throughout 2015 at a steady rate. It is projected that it will fall to 5.2% by the end of the year and then 4.9% by the end of 2016.

Chief Economist, Jeremy Cook added:

"Wages are growing at their best level in three and a half years and inflation is at the lowest level on record: consumers are in a very good position and so are the prospects for the UK economy. Real wage increases, currently at the best levels in nearly seven years represent a silver bullet for the wider UK recovery."

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