Unemployment in the 19-country eurozone fell to 10.9 percent in July from 11.1 percent in June, AP reported.
The European Union's statistics agency, Eurostat, says Tuesday that the figure is the lowest since February 2012.
The rate, however, remains at an uncomfortably high level for the currency union, with 17.5 million people out of work.
The figures showed improvements in Italy, Spain and Portugal but a small increase in France, to 10.4 percent from 10.3 percent.
There remained a huge disparity between countries, with Germany's 4.7 percent rate comparing with Spain's 22.2 percent and Greece's 25 percent.