18 July 2012 Last updated at 04:44 ET
The number of Britons out of work fell by 65,000 to 2.58 million in the three months to May, according to the Office for National Statistics.
The unemployment rate fell to 8.1% in the period, down from 8.3% in the previous quarter.
The ONS figures showed that the number of people in employment rose by 181,000 to almost 30 million.
However, the number of people claiming Jobseeker's Allowance rose by 6,100 to 1.6 million in June.