Wage growth rose more than expected in the three months to September, according to official data that also showed a rise in the unemployment rate.
The Office for National Statistics (ONS) said average weekly earnings, excluding bonus payments, rose at an annual rate of 5.7% in the three months to September.
This was up from 5.4% last month.
Economists polled by Reuters had expected a 5.5% increase.
However, at 5.7% it remains well below the official inflation rate of 10.1%.
Real wage growth was 3.7% weaker in September when the effects of inflation were included, the ONS said.
The unemployment rate rose to 3.6% from 3.5% as the number of people in work fell by 52,000.
Darren Morgan, director of labor and economic statistics at the ONS, said of the change: “The proportion of people neither working nor looking for work has risen again.
“Since the start of the pandemic, this change has been largely caused by older workers leaving the labor market entirely, but in the most recent quarter the main contribution has actually come from younger groups.
“More than half a million working days were lost to strike action in August and September, the highest two-month total in more than a decade, the vast majority coming from the transport and communications sectors.
“With real earnings continuing to fall, it’s no surprise that the employers we survey tell us that most disputes are about pay.”
The figures were released as the economy grapples with the problems of the highest inflation in 40 years and the fallout from Trusonomics, namely September’s now largely reversed mini-budget.
Official figures last week showed the economy contracted in the third quarter of the year as the cost-of-living crisis hit demand, leaving the country on course for a prolonged recession but shallow, according to the Bank of England, which believes the unemployment rate could affect. reached 6.5%.
The Bank fears that the shrinking labor market will add to inflationary pressures, forcing it to raise the Bank Rate even as the economy slips into the expected recession.
The Truss government’s growth plan compounded the problems as financial markets questioned the UK’s economic credibility, making imports more expensive due to the collapse in the value of the pound.
Other implications include rising fixed-term mortgage costs, adding to the growing mountain of household bills.
Jeremy Hunt, the chancellor, will make his autumn statement to MPs on Thursday with little firepower to help ease the general pain.
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2:50 “Taxes will go up for everyone”
He told Sky News on Sunday that everyone was facing higher taxes as the government, now led by Rishi Sunak, aims to take a more sustainable approach to public finances.
The package is believed to be designed to save around £50 billion in annual borrowing over the medium term.
Mr Hunt said in reaction to the jobs data: “Tackling inflation is my absolute priority and that will guide the tough tax and spending decisions we will be making on Thursday.
“Restoring stability and getting the debt down is our only option to reduce inflation and limit interest rate rises.”
Shadow chancellor Rachel Reeves said: “Today’s figures show the impact of 12 years of Tory economic mistakes and low growth.
“Real wages have fallen again, thousands of over-50s have dropped out of the workforce and record numbers of people are out of work because they are stuck on NHS waiting lists or not getting the right job support.
“What Britain needs in Thursday’s Autumn Statement is fairer options for workers and a proper plan for growth.”