The number of people drawing unemployment benefit in the UK has fallen unexpectedly to a 27-year low.

The Office for National Statistics said the benefit claimant count fell from 949,400 in July to 943,000 in August, its lowest level since 1975.

The figures wrong-footed analysts, most of whom had predicted a slight increase in the number of benefit claimants.

The claimant count measure of unemployment for August was unchanged from the previous month at 3.1%.

But the International Labour Organisation measure of unemployment - which includes those out of work but not drawing dole - rose by 7,000 during the three months to July to 1.65m, or 5.2% of the workforce.

Earnings grow

The tight labour market pushed average wages for the three months to July up by 4% compared with the same period one year ealier.

However, the increase in wages remained below the 4.5% ceiling that the Bank of England regards as the maximum compatible with low inflation.

Economists said the figures would have little impact on the Bank's interest rate decisions in the months ahead.

"The report is unlikely to push the Monetary Policy Committee into moving rates one way or the other," said Philip Shaw, economist at Investec bank.

"The focus will remain pretty much on the prospect of the global economy and the domestic consumers."

Last week, the Bank left borrowing costs unchanged at 4% for the tenth consecutive month.

Economy hopes

The lower claimant count will help to allay fears that rising job losses in the manufacturing sector could dampen consumer spending, undermining economic growth.

Analysts say buoyant job creation in the service sector has taken up the slack in the UK labour market, helping to prop up the economy despite sluggish growth in the US and Europe.

Earlier this year, weaker than expected high street spending figures triggered fears that the economy was entering a period of slower expansion.