The number of people claiming jobless benefit in Britain fell to its lowest level in more than a year last month.
At the same time the number of Britons in work in June jumped by the greatest amount in nearly four years.
There was also showed a marked slowdown in earnings growth. That should reassure Bank of England policymakers that rising prices are not yet feeding through into pay demands and so boosting inflation.
Its fifth consecutive monthly fall and pushing the claimant count rate down to a 15-month low of 4.5 percent of the working population.
The pound rose against the dollar and euro after the release of the figures, which suggested Britain’s labour market is continuing to recover as the economy emerges from recession.
However analysts warned the improvement in the labour market may not last; the outlook for growth is uncertain and government spending cuts are likely to result in more than half a million public sector job cuts over the next five years.