Unemployment fell by 50,000 to 2.53m in the three months to August, taking the jobless rate down to 7.9% from 8.1%.
The number of people in employment rose to a record of almost 30 million, the Office for National Statistics said.
The government said it was positive news, but Labour highlighted the growing numbers of people in temporary or part-time work because they could not get full-time, permanent jobs.
The ONS figures show that some 1.57 million people claimed Jobseeker’s Allowance in September, a fall of 4,000 on the previous month.
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