Unemployment figures fell by 16,000 between May and July to 1.41 million – the lowest figure in 20 years.
The number of people claiming unemployment benefit last month has also fallen, by 6,100 to a 30-year low of 830,200, according to the Office for National Statistics.
However, the leap in employment rates was not reflected in average earnings which, including bonuses, increased by 3.8 per cent in the year to July, down 0.5 per cent compared to the previous month.
National Statistics blamed the drop on poor levels of bonus payments; excluding windfalls, wages grew by 4.2 per cent, the same as in the previous period.
