The unemployment rate for the three months to April 2011 fell to 7.7%, down 0.3% on the previous quarter and the largest quarterly drop since August 2000.
According to the latest report from the Office of National Statistics, the total number of unemployed people fell by 88,000 over the period to reach 2.43m.

The quarterly drop in unemployment occurred mainly among those aged 16-24, with youth unemployment falling by 79,000 to reach 895,000 - the lowest figure since the same period in 2009.

The number of public sector jobs fell by 24,000 over the quarter to reach 6.16m, while the number of people employed in the private sector increased by 104,000 to reach 23.08m.

The number of employees and self-employed people working part-time because they could not find a full-time job increased by 46,000 on the previous quarter, reaching 1.21m, the highest figure since comparative records began in 1992.

CBI director for employment Neil Carberry said: "It is good news that unemployment figures have fallen, with the private sector creating jobs. We hope this will continue in the coming months, but we still have a serious problem with long-term unemployment and inactivity. We need to tackle the structural causes of unemployment to get the UK working."

The number of people unemployed for more than 24 months increased by 39,000 to reach 385,000.