The number of people out of work in the UK fell by 133,000 to a fresh five-year low of 2.2 million in the three months to March, official figures show.
The jobless rate also fell to a five-year low of 6.8%, the Office for National Statistics (ONS) said.
The number of people in work rose to 30.43 million, the highest since records began in 1971, helped by a rise in self-employment.
Average earnings in the three months to March were up 1.7% from a year earlier.
The growth rate in wages – which includes bonuses – was unchanged from the previous month and was slower than analysts had expected.
However, with the inflation rate at 1.6% in March – as measured by the Consumer Prices Index (CPI) – it means earnings rose faster than inflation for the first time since 2010.
Excluding bonuses, earnings grew by 1.3% in the three months to March when compared with a year earlier.