Britain saw the largest rise in employment since records began in the three months to July as official figures revealed 286,000 more people secured jobs.
But unemployment fell by less than expected in the quarter, down 8,000 to 2.47 million, while the closely watched Jobseeker's Allowance claimant count rose by an unexpected 2,300 last month to 1.47 million, marking the first increase since January.
The figures from the Office for National Statistics suggested the record-breaking leap in employment came largely as those classed as economically inactive, such as students, took on jobs.
Employment minister Chris Grayling said: "Today's jump in employment, driven by the private sector, is good news but it doesn't disguise the fact that the system the Government inherited is failing to get people on welfare into these jobs.
"It is neither fair for the nearly five million people on benefits, nor the taxpayer who supports them.
"That's why we are pressing ahead with re-testing everyone claiming incapacity benefits and introducing our new Work Programme, which will give people the tailored support they need to move them into sustained work."