The UK unemployment rate fell to its lowest level since 1975 in the three months to January but wage growth was sluggish, Office for National Statistics show.
The unemployment rate was 4.7% as of January, down from 5.1% the year before.
However wage growth slowed to 2.2% from 2.6% in the previous three months.
Scott Bowman, UK economist at Capital Economics, said: “Average earnings growth is not picking up alongside inflation, resulting in a squeeze on real wage growth.
“Nonetheless, we think that the current tightness of the labour market will result in a rise in nominal average earnings growth over the coming months.”