The number of Britons claiming jobless benefit unexpectedly fell last month for the first time since July.
There were 3,700 fewer people registered for unemployment benefit.
The number without a job on the wider International Labour Organisation measure – which includes those looking for work but not claiming benefits – also declined by 9,000 in the three months to September.
But analysts said government spending cuts mean the jobless total is likely to start rising again soon.
However the just announced British royal wedding is expected to give the UK economy a lift next year.
A retail research group says it could be worth as much as 730 million euros.
That would come partly from the sale of commemorative products, as well as increased travel and tourism revenues, but mostly from creating a “feel-good factor” among British consumers.