Eurostat, the EU's statistical agency, said the jobless rate in the 19 country eurozone had fallen to 10.4% from 10.5% in November.
The eurozone's total jobless figure is better than analysts expected because of fears surrounding the slowdown in China and volatility in financial markets.
Jennifer McKeown, Capital Economics analyst, welcomed the improvement, but said a slowing global economy could reverse any progress.
"We still think that the European Central Bank has a lot more work to do," she added.
Howard Archer, economist at IHS Global Insight, said he expected continued modest growth, with unemployment falling to below 10% by the end of the year if current trends continued.
ECB President Mario Draghi has already indicated another stimulus package could be unveiled as soon as next month.