1. ITV Report

Employment rises to record high but real pay is squeezed in latest official figures

Credit: PA

The employment rate in Britain has risen to a record high - but pay is still being squeezed, official figures show.

Just over 75% of working-age residents in the UK are in a job, the highest rate since records were started in 1971, according to the Office of National Statistics

But real pay was down by 0.5% on the year once inflation was taken in account, show latest figures for April-June of this year.

Unemployment figures fell by 57,000 to 1.48 million in the quarter and is now the lowest since 2005.

Fifteen percent of British workers are now self-employed.

The data also showed an estimated 11% of the UK's workforce come from other countries - and EU nationals are more likely to be in employment than Britons.

Working age residents in the UK who have a job.
British workers who are foreign nationals.

The data showed the employment rate for EU nationals in the UK was 80.8%, compared to 75.3% among Britons and 60.9% for for non-EU nationals.

Latest estimates show that average weekly earnings increased by 2.1% over the year to June - but once inflation was taken in account they actually fell by 0.5% in real terms.

TUC general secretary Frances O'Grady said rising prices and tagnant pay were a "toxic combination" for working people.

This is the fourth month in a row where wages have fallen behind the cost of living.

Ministers are sitting on their hands as another living standards crisis unfolds. > It's time to boost wages by scrapping the pay restrictions in the public sector, investing in infrastructure, and increasing the minimum wage.

– Frances O'Grady