The number of young people not in education, employment or training fell by 20,000 in the quarter to June to 955,000, new figures have shown.
So-called 16 to 24-year-old Neets in the UK have been cut by 138,000 from a year ago, although the number increased for 16 and 17-year-olds, said the Office for National Statistics.
Around half of the total age group were classed as unemployed, while the rest were either not looking for work or were not available for a job.
Around 13% of all people in the age group were said to be Neet.
But there were 59,000 people aged 16 or 17 classed as Neet, up by 5,000 from the quarter to March.
The Department for Education said the number of Neets in England was at the lowest level for nine years.
Skills minister Nick Boles said: "Today's figures are hugely encouraging and show how this Government's reforms are properly equipping young people for life in modern Britain.
"With the number of young people not in education, employment or training at their lowest levels for nine years we are seeing the huge progress being made to ensure they have the skills to pursue high-quality careers."
Anthony Harmer, chief executive of education charity ELATT (East London Advanced Technology Training), which helps people gain long-term employment, said: "Today's figures highlight the important progress that is being made to help young people find work.
"However, more needs to be done for those who still remain furthest away from the labour market."