The number of people unemployed in the UK declined by 34,000 to 2.47m in the three months to May, according to the Office for National Statistics.

The number of people also claiming Jobseeker's Allowance fell in June by 20,800 to 1.46m and the jobless rate in the UK is now 7.8% - the lowest rate since January.

The number of people in work rose by 160,000 in the three months to May, the biggest rise since August 2006. However, the increase was due to a record 148,000 rise in the number of part-time workers, while full-time workers increased by just 12,000.

“These figures are much better than expected. Employment is up, unemployment is down, and there has been a fall in the level of inactivity,” said David Kern, Chief Economist at the British Chambers of Commerce.

“However, there is no room for complacency. Despite these positive figures, the number of people unemployed for more than twelve months rose over the quarter, and there was a worrying increase in the number of people classified as long-term sick.”