Unemployment fell by 49,000 to 2.51 million in the three months to September, taking the jobless rate to 7.8% from 7.9%.
ONS figures also showed that the total pay (including bonuses) rose by 1.8% compared with July to September 2011.
John Salt, director at recruitment website, totaljobs, said: "These figures paint the UK economic outlook in a positive light. Following the rush to take staff on for the Olympics, the UK faced a potential autumnal lull in the jobs market.
"However it seems we're over the last hurdle for 2012, with temporary workers due to be hired in time for Christmas, the UK labour force will grow into the new year. It seems that the private sector's inability to pick up the pieces has resulted in the public sector slowly starting to hire, which, alongside the continued increase in temporary and part-time workers, is helping to keep the UK economy afloat."
He added: "However underemployment remains a concern, as the UK's reliance on high levels of part-time workers puts pressure on the living and working standards of many UK citizens."
Anna Marie Detert, director at KPMG management consulting, said: "Today's data is yet another sign of recovery in the jobs market, and it is being driven primarily by an increasing confidence in the private sector, where manufacturing and services have seen an uptick in demand.
"Yet, whilst any increase in employment is a good thing, we should not forget the plight of the long-term unemployed and younger members of society, who are struggling to break into the workforce.
"Their inability to find roles is damaging, both for individual morale and for organisational capability because UK organisations are still suffering from skills shortages that affect performance, productivity and profitability."
Ann Pickering, HR director at O2 said: "The fall in youth unemployment reflected in today's ONS data is a step in the right direction - but we're still far from solving this crisis.
"More must be done for the hundreds of thousands of young people still looking for employment and we can all help. Businesses, big and small, have a role to play in supporting young people on their journey to work. This can be anything from offering quality work experience and apprenticeships through to mentoring."
