The Office for National Statistics says the number of people in work has risen and those claiming benefits have fallen again.
The number of people claiming jobseekers allowance fell by 5,900 in July after analysts had forecast an increase of 6,000 on the month. The number of people without a job fell by 46,000 in the three months to June to 2.5 million.
Employment in Britain rose by 201,000 in the three months through June. Almost half of all the new jobs were created were in London, so the news seems to point to an Olympic boost for the UK's job market.
The government was banking of the private sector creating more jobs as the Coalition continues with its program of spending reductions to reduce the UK's deficit, which has so far been reduced by 25% since David Cameron came to power in 2010.
