The number of people in the UK claiming jobless benefit fell more than expected in May.
The Office for National Statistics says 31,000 fewer people were on the dole last month and the total is now at its lowest rate in more than a year.
But in the first three months of the year there was an increase in the total number of unemployed Britons using on the wider International Labour Organisation system of measurement.
That took the jobless rate up to 7.9 percent.
The pound rose against the dollar after the figures, which reinforced hopes the economic recovery is gathering pace in the UK after an 18-month recession.