Fears of a "cost of living crisis" have been reignited after regular wages growth fell to a record low of 0.7%.
Overall pay - including bonuses - climbed by just 0.3% compared with the three months to May in 2013, which is the lowest increase since the financial crisis in 2009. The figure is skewed by higher bonus payments in April 2013 that took advantage of tax rate changes.
However, the increase of regular pay - excluding bonuses - was at 0.9% in the three months to April before sinking to an all-time low of 0.7% growth since records began in 2001.
Len McCluskey, general secretary of the Unite union, said: "With wage growth at its lowest rate since 2001, while inflation continues to vastly outstrip wage rates, ordinary people are working harder and getting poorer."
Figures released today by the Office for National Statistics showed that unemployment had dropped by 121,000 to 2.12 million.
The new Cabinet has been given some positive news on the jobs front with latest figures showing record employment and a big fall in the number of people out of work.
Vince Cable said it is a "very positive story" and the figures were "remarkable" with more than one million new jobs in the last year.
Unemployment fell by 121,000 to 2.12 million between March and May, according to the Office for National Statistics.
The Government received good news on the jobs front today with the latest unemployment figures showing a record number of people in work.
Over 30 million people are now in work, which is an increase of almost a million in the past year - the best figures since records began in 1971.
There is an employment rate of 73.1%, with just over 78% of men and 68% of women in work.
More than 4.5 million people are self-employed, which is the highest since records began in 1992 after an increase of 404,000 over the past year, Office for National Statistics showed.
The country's "resilience" during the economic downturn "is being rewarded" after figures released today showed a fall in unemployment, Employment Minister Esther McVey said.
She said: "An important milestone has been reached in our country's recovery. With one of the highest employment rates ever, it's clear that the Government's long-term economic plan to help businesses create jobs and get people working again is the right one.
"With an employment rate which has never been higher, record women in work and more young people in jobs, the resilience of the country during the downturn is being rewarded.
"We know there is more to do, and the best way to do so is to go on delivering a plan that's creating growth and jobs."
David Cameron has welcomed today's figures which shows there has been a fall in unemployment.
The Prime Minister tweeted that the figures "show more people have the security of a job than ever before".
Today's figures show more people have the security of a job than ever before. Full employment is a key aim of our #LongTermEconomicPlan.
Unemployment fell by 121,000 to 2.12 million between March and May, official figures showed.
The number of people claiming jobseeker's allowance last month fell by 36,300 to 1.04 million, said the Office for National Statistics.
Average earnings increased by 0.3% in the year to May, 0.5% down on the previous month.