The Office for National Statistics (ONS) released its labour market data on Wednesday. The U.K. unemployment rate fell to 5.5% in the May to July quarter from 5.6% in the April to June quarter. It was the lowest reading since 2008.
Analysts had expected the unemployment rate to remain unchanged at 5.6%.
The claimant count rose by 1,200 people in August, missing expectations for a decline by 5,000, after a decrease of 6,800 people in July. July's figure was revised up from a fall of 4,900.
U.K. unemployment in the May to July period rose by 10,000 to 1.82 million from the previous quarter.
Average weekly earnings, excluding bonuses, climbed by 2.9% in the May to July quarter, in line with expectations, after a 2.8% gain in the February to April quarter. It was the highest gain since early 2009.
Average weekly earnings, including bonuses, rose by 2.9% in the May to July quarter, exceeding expectations for a gain of 2.5%, after a 2.6% increase in the February to April quarter. The previous three months' figure was revised up from a 2.4% increase.
The Bank of England monitors closely the wages growth it considers when to start hiking its interest rate.