If you are talking about actually compressing the text not just shortening then Deflate/gzip (wrapper around gzip), zip work well for smaller files and text. Other algorithms are highly efficient for larger files like bzip2 etc.
Wikipedia has a list of compression times. (look for comparison of efficiency)
Name | Text | Binaries | Raw images
-----------+--------------+---------------+-------------
7-zip | 19% in 18.8s | 27% in 59.6s | 50% in 36.4s
bzip2 | 20% in 4.7s | 37% in 32.8s | 51% in 20.0s
rar (2.01) | 23% in 30.0s | 36% in 275.4s | 58% in 52.7s
advzip | 24% in 21.1s | 37% in 70.6s | 57& in 41.6s
gzip | 25% in 4.2s | 39% in 23.1s | 60% in 5.4s
zip | 25% in 4.3s | 39% in 23.3s | 60% in 5.7s