The number of people in work has continued to rise while average earnings have grown slightly faster than inflation, official figures show.
Workers benefited as average earnings increased by 2.6% in the year to July, up from 2.4% the previous month, according to the Office for National Statistics.
Employment also increased by 3,000 in the three months to July to 32.4 million, giving a rate of 75.5%.
ONS head of labour market statistics David Freeman said: "Earnings have grown faster than prices for several months, especially looking at pay excluding bonuses."
The latest consumer prices index (CPI) rate of inflation was recorded at 2.5%.
It came as unemployment fell by by 55,000 over the period to 1.36 million, giving a jobless rate of 4%.
Freeman added: "With the number of people in work little changed, employment growth has weakened.
"However, the labour market remains robust, with the number of people working still at historically high levels, unemployment down on the year and a record number of vacancies"
The number of people classed as economically inactive, including students, those on long-term sick leave, taken early retirement, or who have given up looking for work, rose 108,000 on quarter to 8.76 million in the last three months, giving a rate of 21.2%.
The claimant count, which includes people on Jobseeker’s Allowance and the unemployment element of Universal Credit, rose by 8,700 to 918,800 in August, around 118,500 more than a year ago.