UK unemployment fell by 75,000 in the three months to July, bringing the jobless rate down to 4.3% from 4.4% in the previous quarter.
The rate remains at its lowest since 1975, but a squeeze on real incomes continues, according to the Office for National Statistics figures.
Wages in the period were 2.1% up on a year earlier, little changed from the previous months’ growth rates.
With inflation hitting 2.9% in August, wages are failing to keep up.
In real terms, wages dropped by 0.4% in the three months to July.
Inflation has picked up sharply since the pound fell after the Brexit vote last year.
The data could further divide the Bank of England’s Monetary Policy Committee, which sets interest rates.