The number of people in work has reached a record high of almost 30 million and unemployment has continued to fall, according to new figures today.

The jobless total was cut by 32,000 in the three months to January to 1.61 million, while the numbers on Jobseeker's Allowance fell by 2,800 last month to 793,500.

It was the 17th consecutive monthly fall in the claimant count, although it was the smallest reduction since October 2006, said the Office for National Statistics.

Employment levels increased by 166,000 over the latest quarter to reach 29.46 million, the highest figure since comparable records began in 1971.

The number of people employed in the public sector was 5.78 million, up by 7,000 on the quarter but 23,000 down on the year. The number of jobs also reached a record high, up by 13,000 in December to 31.62 million, the highest figure since 1959. But the loss of manufacturing jobs continued, down by 28,000 in the three months to January to 2.9 million, the lowest for 30 years.

Other data showed a fall in the number of people classed as economically inactive, down by 68,000 in the quarter to January to 7.89 million.

But the figure, which counts people looking after a relative, on long-term sick leave or those who have given up looking for a job, was only 2,000 lower than a year ago and still accounted for a fifth of the UK's working population. Average earnings increased by 3.7% in the year to January, down by 0.1% from the previous month. Excluding bonus payments the figure was unchanged, also at 3.7%.

The number of vacancies across the UK reached a seven-year high of 678,500 last month, while 110,000 workers were made redundant in the three months to January, the lowest number since 1995.

There were 4,000 working days lost through industrial disputes in January, the lowest since last April