The number of people out of work fell by 7,000 to 2.59 million in the three months to July, compared with the previous three month period.
The unemployment rate was 8.1%, down 0.1% on the previous quarter.
The number out of work for more than a year was 904,000, the highest since 1996, official figures showed.
But the Office for National Statistics (ONS) also said the number of people claiming Jobseeker’s Allowance fell by 15,000 in August to 1.57 million.
The drop in the number of claimants was the largest since June 2010.
The number of people in work increased by 236,000 to 29.6 million, the largest quarterly rise for two years.