UK wages rose at their fastest pace in 11 years in three months through June and employment climbed to a record high.
The stronger-than-forecast figures from the Office for National Statistics suggest the labour market remains tight, meaning the Bank of England is unlikely to join the global rate-cutting trend, at least for now.
However, unemployment rate rose as more people actively started looking for work, and there were signs jobs market is succumbing to Brexit jitters weighing on wider economy, with vacancies falling to their lowest level since early 2018.
Average earnings excluding bonuses rose 3.9% from a year earlier, the most since the second quarter of 2008. Total earnings growth accelerated to 3.7%.
Wage growth is comfortably outpacing inflation, which averaged 2% during the period. Figures boosted by timing of wage increases in the National Health Service.
The number of people in work rose by a stronger-than-forecast 115,000, taking the employment rate to a joint-record high of 76.1%.
Jobs growth was not enough to absorb the growth in the active labor force, pushing up the jobless rate to 3.9% from a 44-year low of 3.8%. Inactivity stood at a joint-record low of 20.7%.
Weak productivity growth is fueling domestically generated price pressures. Separate figures Tuesday show output per hour fell 0.6% in the second quarter from a year earlier, the fourth decline in a row.