The amount of people claiming jobless benefits has sunk to a 32-year low despite growing concerns over companies' long-term recruitment plans.

The number of people claiming jobseeker's allowance dropped by 11,100 in November to a total of 813,000, making it the lowest on record since June 1975.

The data from the Office for National Statistics also revealed that year-on-year average earnings rose by 4% in November, down from the rate of 4.1% seen in October.

A combination of a slight reduction in salary increases and a strong recruitment market may act to keep inflation under control.

The Bank of England cut interest rates in December for the first time since August 2005 but remains wary of the threat posed by inflation.