Unemployment fell by 49,000 in the three months to September.
Figures from the Office for National Statistics show this drop is primarily because of a decrease in youth unemployment.
It means the number of people out of work in the UK is at its lowest level for over a year, which should be reassuring for many people.
The Bank of England's governor Sir Mervyn King pointed to the figures as evidence of the "pretty strong" labour market in the UK.
He added: "The road to recovery will be long and winding, but there are good reasons to suggest we are travelling in the right direction."
Employment minister Mark Hoban told the BBC that the data made for good reading, as youth unemployment is below one million again, but long-term unemployment still needs to be tackled.
Between July and September, there were more than nine million economically inactive people aged between 16 and 64, which represents a decrease of 25,000 on the previous quarter.