The surprise statistics suggested the labour market was “defying gravity”, experts said.
Overall jobless figures fell by 46,000 in the three months to June, to 2.56million, the Office for National Statistics said. There were 1.59million people claiming Jobseeker’s Allowance last month, down 5,900 on June, the first fall since April.
The number of people in work was up by 201,000 to nearly 30million.
Most of the fall was in London, suggesting that the Olympic and imminent Paralympic Games had provided a big boost.
But critics warned the good news was patchy and temporary.
The number of part-time workers reached a new high of 8.07million, while youth unemployment fell by 4,000 but remains over one million.
Work and Pensions Secretary Iain Duncan Smith said: “These are positive and encouraging figures.”
The labour market continues to defy gravity given the weakness of the economy
But economist Howard Archer, of IHS Global Insight, said: “The labour market continues to defy gravity given the weakness of the economy.”