The number of people receiving benefits is the lowest for any June quarter since 2008.
Latest data shows that at the end of June, 285,349 people were receiving a benefit - 8200 fewer than at the same time a year ago.
The biggest drop was in the number of sole parents claiming a benefit which fell by 6.5 percent.
Social Development Minister Anne Tolley said she was pleased to see the strong downward trend as Work and Income supports more people into work.
