There are just over 32 million people in employment, but the 56,000 drop between August and October is the largest since the three months to May 2015, the Office for National Statistics (ONS) said.
That was despite a continued fall in joblessness, explained by the fact that the number of people classed as economically inactive - meaning they are not seeking or available to work - rose by 115,000 to 8.8 million.
Average earnings excluding bonuses rose by 2.3% in the year to October, although pay is still growing at less than the rate of inflation.
This means pay in real terms - when taking into account inflation - dropped by 0.4%, the eighth month in a row of decline.
The figures come a day after official data showed inflation had risen to a near six-year high of 3.1% in November - forcing the Bank of England to explain the unexpected rise to Chancellor Philip Hammond.
The unemployment rate remained static at 4.3%, its lowest level since 1975.
The jobless total fell by 26,000 to 1.4 million, which is 182,000 lower than a year ago.
Responding to wage growth falling behind inflation for the seventh month in a row, Seamus Nevin, from the Institute of Directors, said: "The battle in the new year will be to keep our strong jobs performance going while also tackling the effect inflation is having on take home pay."
Other figures showed the number of people in work in the public sector rose by 19,000 in September to 5.4 million, mainly due to an increase in the NHS workforce, while the job count in the private sector fell by 75,000 to 26.5 million.
Employment Minister Damian Hinds said: "We're ending the year on a strong note, with figures showing the unemployment rate has fallen every month in 2017, and is now at the lowest it's been in over 40 years.
"Employment is at a near-record high, and there are over three million more people in work now compared to 2010 - that's more than the population of Greater Manchester."
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