The overall unemployment rate fell to 6.4% in Q2, which is the lowest since the end of 2008, according to the Office for National Statistics (ONS).
2.08 million people were still unemployed in the second three months of the year, 132,000 fewer than in the period between January and March. The data showed that the labour market continues to recover, the ONS stressed.
However, average earnings excluding bonuses only rose by 0.6% in Q2. Including bonuses, total pay packets actually contracted by 0.2% during the quarter, the first fall since 2009.
Considering that inflation hit 1.9% in June, wages levels lagged significantly behind.