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Employment Minister Mark Hoban: "People do want to work and there are jobs out there for them"
The number of people out of work fell by 50,000 to 2.53 million in the three months to August, according to the Office for National Statistics (ONS).
Employment reached a record high of almost 30 million, while the unemployment rate fell to 7.9%.
The ONS also said the number of people claiming Jobseeker's Allowance fell by 4,000 to 1.57 million in September.
The UK has been in recession, but many economists expect third-quarter figures to show a return to growth.
Continue reading the main storyThe number of people in employment has not been higher since records began in 1971.
The employment rate for those aged from 16 to 64 for the three months to August was 71.3% - which is the highest since April 2009. But the percentage of those in employment is still lower than the peak of 73%, which was recorded in 2008 before the peak of the financial crisis and ensuing recession.
The BBC's economics editor, Stephanie Flanders, points out that there are also more people in the UK than ever before.
Temporary jobs
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Nicholas Palmer from the ONS: "The total level of unemployment is the lowest its been since the spring of 2011"
"It's a real landmark to see more people in work than ever before," Employment Minister Mark Hoban said.
"Despite the tough economic times, the private sector continues to create jobs and our welfare reforms are encouraging people to return to work - with 170,000 fewer people on the main out-of-work benefits than in May 2010."
The government also noted that there were more job opportunities available, with the number of unfilled vacancies at 476,000, up 3,000 on the quarter and 17,000 from the same period last year.
Labour questioned the quality of the jobs, however.
"For those people who are in work, more will be on temporary contracts than for a very long time - the highest for 10 years," shadow work and pensions secretary Liam Byrne told the BBC.
"About 60% of the jobs created since the general election are either self-employed or part-time.
"People in Britain are busting a gut and doing whatever it takes to get into work, but it just looks like the government are doing nothing to help them," he said.
Before the figures were released, the government announced the extension of its New Enterprise Allowance scheme, which it says will help 33,000 more jobseekers benefit from advice from a mentor to draw up a business plan.
The number of unemployed people aged from 16 to 24 fell by 62,000 for the three months to 957,000 - down from the previous period, which was March to May.
This includes the 298,000 unemployed young people in full-time education.
In Scotland, unemployment increased for the second time in a row, rising by 7,000, while in Wales, the number of jobless fell by 7,000 between June and August.
Unemployment was up 10,000 in Northern Ireland and down 59,000 in England.
Average earnings increased by 1.7% in the year to July, which was a small increase from the previous month.
The unemployment rate dropped from 8.1% in the previous three-month period.
Claimant count - June 2012
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