UK employment has reached a new record high of 73.7% and the unemployment rate is also down at 5.3%.

The latest figures from the Office for National statistics show the unemployment rate is now at its lowest since early 2008. Average pay has grown by 3% over the last year.

31.21 million people were in work, an increase by 177,000 in the second quarter from April to June 2015. 103,000 fewer people were unemployed in the third quarter period from July to September 2015.

Further figures show:

• more women are in work, an increase of almost a million since 2010
• youth employment rate is at 74.3%, the highest in more than a decade
• long-term employment has fallen by 25% to 514,00, the lowest in 6 years.

John Allan, Federation of Small Businesses (FSB) national chairman, said:

“The jobs market remains encouraging with steady growth in employment and wages, proving again the ability of the private sector, and especially small businesses, to create jobs.

“The upcoming Autumn Statement will be a key opportunity for the chancellor to reassure business and demonstrate he is aware of the challenges they face, and to maintain the positive momentum in the labour market.”

James Sproule, chief economist at the Institute of Directors (IOD), commented:

“With the employment rate at an all-time high and the number of vacancies near a post-crisis high, pay increases look set to remain a feature of the economy as confidence grows and employees push for wage increases.

”Looking forward, Britain is fast approaching full employment, and there is a danger that future wage growth will not be the result of better corporate performance, but competition for employees.”