Unemployment in the UK fell by 65,000 from the three months up to May, latest figures from the Office for National Statistics (ONS) show.
There are now 2.58 million people out of work in the UK. This takes the unemployment rate down to 8.1 per cent of the population from 8.3 per cent in the previous quarter, the lowest number for almost a year.
Around 29.35 million people are in employment, with an additional 181,000 finding work within the last quarter.
Elsewhere, total pay - including bonuses - and regular pay both rose by 1.5 per cent and 1.8 per cent respectively from the same period last year.
Gerwyn Davies, Labour market Adviser at the Chartered Institute of Personnel and Development (CIPD) said the unemployment figures 'defy the laws of economic gravity.'
"The downside is that, for now, we have a seemingly entrenched pattern of falling productivity and subdued pay affecting the competitiveness of employers and the living standards of employees.
"The employment picture is encouraging, but the missing ingredient is economic growth - without which the risk remains that another shock of any kind may send our surprisingly resilient labour market into reverse."
Long term unemployment increased, with those who are out of work for more than two years up by 18,000 to a total of 441,000, the highest level since 1997.
The number claiming Jobseeker's Allowance (JSA) in June also increased by 6,100, up 78,600 on a year earlier.
"The most worrying aspect of today's figures is the rise in long-term unemployment. This puts the spotlight on the Government's Work Programme, which is tasked with getting the most disadvantaged in the labour market into sustainable employment," Davies added.
Talking to the Independent, employment minister Chris Grayling said: "This is an encouraging set of figures in what is still an incredibly difficult economic climate. Not only is unemployment falling but in overall terms there are now almost 100,000 less people on benefits since the 2010 election. We still have a long way to go but this is a step in the right direction."
Date:18 July 2012