UK unemployment fell by 57,000 to 2.51 million in the three months to May, the Office for National Statistics says.
The unemployment rate was steady at 7.8%.
The ONS also said that the number of people claiming Jobseeker's Allowance in June fell by 21,200 to 1.48 million. This fall was the fastest rate in three years.
The ONS data showed that employment was up by 16,000 to a total of 29.7 million.
Although youth unemployment was down by 20,000, the number of long-term jobless rose.
About 915,000 people have been out of work for more than a year, an increase of 32,000 and the highest total since 1996.
Just over 460,000 people have been jobless for more than two years, the highest figure since 1997.
The number of people classed as economically inactive also increased in the latest quarter, up by 87,000 to 9.04 million.
Unemployment is now 72,000 lower than a year ago, which Employment Minister Mark Hoban said was "encouraging".
"The fall in the number of people claiming out-of-work benefits, together with the news that there are currently over half a million vacancies available in the UK economy, show that there are opportunities out there for those who are prepared to work hard, and who aspire to get on in life," he said.
But Dave Prentis, general secretary of the Unison union, said the figures would be little comfort to those people still struggling with unemployment.
"Small relief in the unemployment figures will be no comfort to those struggling with the misery of long-term unemployment.
"Every job lost is a personal tragedy and the government has to do more to tackle the persistent jobs crisis."
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