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LIVE: Bank of England chief holds briefing on inflation report
UK unemployment edged closer to a six-year low in the three months to the end of June, official figures have shown.
The Office for National Statistics said the unemployment rate fell to 6.4% in the quarter, the lowest since late 2008 and down from 6.5% in May.
The number of people unemployed fell by 132,000 to 2.08 million.
But average wages excluding bonuses rose by 0.6% in the year to June, the slowest rise since records began in 2001.
Including bonuses wages fell 0.2%, the first fall since 2009.
The ONS said average wage rises were affected by an unusually high number of employees deferring bonus payments until after the top rate of tax was cut from 50p to 45p last year, which have skewed year-on-year comparisons.
However, low average wage inflation has been cited by Bank of England governor Mark Carney as a growing concern for monetary policymakers and is likely to have a bearing on the timing of any interest rate decision.
Low average wage rises are an indication of the level of so-called "spare capacity" in the economy.
Spare capacity is the Bank of England's measure of the extent to which the UK economy is underperforming, as a result of a lack of business investment either in hiring new staff, technology or machinery.
The figures for unemployment in the three months to the end of June are based on the Labour Force Survey, in which the ONS speaks to 60,000 households once a quarter, making it the country's biggest household survey.
The ONS is 95% confident that the figure of a 6.4% rate of unemployment is correct to plus or minus 0.2 percentage points - in other words, it's between 6.2% and 6.6%.
The ONS said number of people claiming Jobseeker's Allowance fell for the 21st month in a row in June, by 33,600 to 1.01 million.
If the claimant count falls again in September it will fall below 1 million for the first time since September 2008.
The number of young people out of work also fell in the three months to June by 102,000 to 767,000, more than 200,000 lower than a year ago, the biggest fall since records began in 1992.
Analysis
BBC News head of statistics, Anthony Reuben:
It's important to remember what the average earnings figure measures, which is the average of what everybody is earning across the country.
Falling average earnings does not necessarily mean individuals are having their pay cut - it might fall if lots of people got part-time jobs, or if many new low-paying jobs were created, for example.
Another ONS survey tracks how the wages of a selection of full-time employees has been changing, and while the most recent figures we have from that are for April 2013, at the time they were showing considerably greater rises than average earnings.
Are you unemployed? Are you working but with reduced or frozen pay? Email us at haveyoursay@bbc.co.uk adding 'Unemployment' in the subject heading and including your contact details.
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