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Wages rose at an annual fee of two.9% within the three months to March, sooner than inflation for the primary time in additional than a yr, in accordance to official figures.
Over the identical three-month interval, the inflation fee was 2.7%.
Inflation began to overtake wages in February final yr, squeezing incomes.
Figures from the Office for National Statistics additionally confirmed that unemployment fell by 46,000 to 1.42 million.
Compared with the identical interval a yr in the past there have been 396,000 extra individuals in work.
Senior ONS statistician Matt Hughes mentioned: "With employment up once more within the three months to March, the speed has hit a new report, with unemployment remaining at its lowest fee since 1975.
"The development in employment remains to be being pushed by UK nationals, with a slight drop over the previous yr within the variety of overseas employees. It's vital to bear in mind, although, that this is not a measure of migration."