Unemployment fell by 50,000 between June and August to 2.53 million, official figures showed today.
The number of people claiming jobseeker's allowance last month fell by 4,000 to 1.57 million, said the Office for National Statistics.
Employment has reached a record high of almost 30 million.
Average earnings increased by 1.7% in the year to July, 0.1% up on the previous month.
Minister for Employment Mark Hoban said: "It's a real landmark to see more people in work than ever before. 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 big fall in youth unemployment is particularly welcome, but we know this remains a challenge, which is why we have the £1 billion Youth Contract offering nearly 500,000 work experience places, apprenticeships and wage incentives to help young people get a job."
Unemployment in the regions between June and August was:
Region Total unemployment Change on quarter Percentage rate
North East 129,000 minus 11,000 9.9%
North West 292,000 minus 40,000 8.4%
Yorkshire/Humber 253,000 minus 9,000 9.3%
East Midlands 180,000 minus 13,000 7.8%
West Midlands 233,000 plus 5,000 8.6%
East of England 206,000 no change 6.6%
London 380,000 plus 10,000 8.9%
South East 281,000 minus 2,000 6.3%
South West 158,000 no change 5.8%
Wales 125,000 minus 7,000 8.3%
Scotland 222,000 plus 7,000 8.2%
Northern Ireland 70,000 plus 10,000 8.1%
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