New figures show that unemployment has fallen by 88,000, while the number of people in work has increased by a similar number.
The quarterly fall was the biggest in more than a decade, taking the jobless total to 2.43 million.
The reduction was mainly among 16 to 24-year-olds, with unemployment in this age group being cut by 79,000 to 895,000, the lowest figure for two years. Full-time employment increased by 49,000 in the latest quarter and by 31,000 for part-time jobs.
The fall in the number of unemployed young people means that the total is now lower than the level inherited from Labour.
Employment Minister Chris Grayling said: "This is another encouraging set of figures and a very welcome drop in unemployment. It's also good news that employment is going in the right direction with half a million more people in private sector jobs compared to this time last year."
He continued: "However, we still face a challenge to help more of the long- term unemployed into work. Last week I announced that the new Work Programme is now up and running and will provide tailored support for more people on benefits."
The Government said private and voluntary sector organisations were investing £581 million up front in the biggest welfare-to-work programme this country has ever seen.