Unemployment has fallen by 45,000 between January and March to 2.63 million, the second consecutive month that the number has dropped.
The number of people claiming jobseeker's allowance last month fell by 13,700 to 1.59 million, said the Office for National Statistics, the biggest fall of its kind since July 2010.
While, average earnings increased by 0.6% in the year to March, 0.5% down on the previous month, the number of people in work increased by 105,000 to almost 30 million. However, this was entirely due to a rise in part-time workers.
Almost eight million Britons are now in a part-time job, the highest since records began in 1992, while those working part-time because they cannot find full-time work increased by 73,000 to a record high of 1.4 million.
Average earnings increased by 0.6% in the year to March, down by 0.5 percentage points on the previous month because of lower bonuses in the private sector.
Self-employment has also reached a record figure of 4.1 million, up by 89,000 since the previous quarter.
In less good news for the Government, other figures from the Office for National Statistics showed that the number of people unemployed for more than a year increased by 27,000 to 887,000, the worst total since 1996.
The number of people unemployed for more than two years rose by 5,000 to 428,000.
Employment Minister Chris Grayling said that Wednesday's figures were: "A welcome step in the right direction. For a number of months now, employment has been growing and this is starting to feed through into improving unemployment figures.
"However, we still face significant international uncertainty so we need to hold firm on our current economic strategy and continue to do everything we can to ensure unemployment continues to fall."
A flooded road is seen in Hatteras Island, N.C., Sunday, Aug. 28, 2011after Hurricane Irene swept through the area Saturday cutting the roadway in five locations. Irene caused more than 4.5 million homes and businesses along the East Coast to reportedly lose power over the weekend, and at least 11 deaths were blamed on the storm. (AP Photo/Jim R. Bounds)
Gael Monfils of France slides to play a backhand against Juan Carlos Ferrero of Spain in their second round match during day four of the Internazionali BNL d'Italia 2012 at the Foro Italico Tennis Centre on May 15, 2012 in Rome, Italy. (Photo by Clive Brunskill/Getty Images)
An Indian woman washes face with water gushing out at a public tap between train tracks at a railway station in Jammu, India, Tuesday, May 15, 2012. (AP Photo/Channi Anand)
A worker fumigates the field before the start of an Indian Premier League (IPL) cricket match between Delhi Daredevils and Kings XI Punjab in New Delhi, India, Tuesday, May 15, 2012. (AP Photo/Manish Swarup)
A clown jokes as he sits at a bus stop during a clown parade in San Salvador, El Salvador, Tuesday, May 15, 2012. More than 100 clowns from Central America and Mexico attended the clown convention. (AP Photo/Luis Romero)
People walk outside the Greek parliament on Tuesday, May 15, 2012. Greece is headed for another month of political paralysis ahead of new elections in mid-June, after party leaders on Tuesday failed to reach an agreement to build a coalition government. The protracted deadlock and the prospect of an anti-austerity party winning the new vote hammered Europe's markets on fears that the debt-crippled country could be forced out of the European single currency, triggering shock-waves throughout the 17-country eurozone. (AP Photo/Petros Giannakouris)
A fan, top left, and Baltimore Orioles left fielder Xavier Avery reach for a two-run home run by New York Yankees' Curtis Granderson in the seventh inning ofÂ a baseball game in Baltimore, Tuesday, May 15, 2012. Baltimore won 5-2. (AP Photo/Patrick Semansky)
A giant mural of the face of Johnny Depp as Barnabas Collins in Tim Burton's film the 'Dark Shadows' hangs on a Park Avenue Building May 15, 2012 in New York. The Warner Brothers movie is a adaptation of the 1970s vampire televsion series. AFP PHOTO TIMOTHY A. CLARY (Photo credit should read TIMOTHY A. CLARY/AFP/GettyImages)
Berlin´s fans throw firework on the pitch during the Relegation match for Germany´s first division Bundesliga between Fortuna Duesseldorf and Hertha BSC Berlin in the German city of Duesseldorf on May 15, 2012. The game ends in a 2-2 draw meaning Fortuna Duesseldorf will play in the first division next season and Herth are relegated to the second division. AFP PHOTO / PATRIK STOLLARZ (Photo credit should read PATRIK STOLLARZ/AFP/GettyImages)
A model posing with the Beau Sancy diamond during a Sotheby's auction press preview in Geneva. A centuries-old diamond passed down through generations of European royalty fetched nine million Swiss francs ($9.7 million) at auction in Geneva on May 15, 2012. The 35-carat 'Beau Sancy' diamond was worn by Marie de Medici, Queen consort of Henry IV, at her coronation in 1610. An anonymous telephone bidder purchased the jewel, put on the market by the House of Prussia and described by sellers Sotheby's as one of the 'most fascinating and romantic' gems ever to come to auction. AFP PHOTO/ FABRICE COFFRINI (Photo credit should read FABRICE COFFRINI/AFP/GettyImages)