The number of people unemployed in the UK fell by 49,000 to 2.46 million in the three months to June.
According to figures by the Office for National Statistics, this mark the second monthly fall and the biggest drop in three years.
The number of people in employment aged 16 or over increased by 184,000 on the quarter to reach 29.02m. This marked the largest quarterly increase in the number of people in employment since 1989. Employment is up 104,000 on the year but is 507,000 lower than two years ago.
The quarterly increase was driven by a rise in part time workers, which increased by 115,000 to reach 7.84m, the highest number since records began in 1992. The number of full time workers increased by 68,000 on the quarter to reach 21.18m.
The number of people claiming Jobseekers Allowance fell by 3,800 between June and July 2010 to reach 1.46m.