Overall, 180 workers were killed at work between 1 April 2008 and 31 March 2009 – a rate of 0.6 per 100,000 employees – down from 233 in the previous year and 17% lower than the previous lowest total of 217 recorded in 2005/06.
However, manufacturing deaths remained at a rate of around 1.1 per 100,000 with 32 fatal injuries recorded in the year compared to 33 the previous year. This is below the average of 37 for the previous five years.
Judith Hackitt, chairwoman of the HSE, said: "These statistics are encouraging, but there is no magic wand in health and safety.
"When those running organisations show personal leadership, and when workers are involved in tackling the risks that they face, safety can be improved and lives saved – that is how we can turn this encouraging sign into real sustained improvement."
The figures come just weeks after Unite condemned health and safety practices in the paper sector following the death of an employee at Arjowiggins' Ivybridge paper mill in Devon.
Bud Hudspith, Unite health and safety adviser, is due to meet with the CPI this month to discuss a strategy for improvement.
"We are expecting the CPI to respond positively," he said. "In the meantime, we will be gathering evidence of health and safety problems in the industry from our officers dealing with paper mills."