The unemployment rate now stands at 6%, down 0.4 percentage points from April to June 2014 and down 1.2 percentage points from a year earlier.
The ONS said the number of people in employment increased by 112,000 on the quarter and by 694,000 on the year to reach 30.79 million for April to June 2014.
Average pay, including bonuses for the quarter, was 1% higher than a year earlier, while pay excluding bonuses grew by 1.3%.
Some 73% of people aged 16 to 64 are in work.
Richard Troue, head of investment analysis, said: “A lack of wage growth has been the missing link from the otherwise robust economic recovery Britain has experienced. However, the recent trend has been for wages to show very modest, below inflation growth and one month in isolation is not enough declare a turnaround. The champagne should remain on ice for now.
“Nevertheless, falling unemployment and rising wages are good news, and with the oil price sliding below $80 per barrel inflationary pressures are easing. Energy and food prices have been falling recently, so even modest wage growth could ease the pressure on consumers and households further, putting more pounds in their pocket in the run up to Christmas.”
Today, the Bank of England predicted that Consumer Price Index inflation would fall below 1% in the next six months.
