The UK unemployment rate has dipped to its lowest level in over a decade while pay growth continues to rise, new figures reveal.
The figures show that the labour market is holding up despite a broader slowdown ahead of next week's vote on Britain's future in Europe.
The number of unemployed people in the UK fell 20,000 in the three months to April to 1.671 million, taking the unemployment rate to 5%, its lowest since the three months to October 2005, the Office for National Statistics said.
Economists in a Reuters poll had expected the unemployment rate to be steady at 5.1%.
The number of people in work in the UK rose by 55,000, keeping the employment rate at a record high of 74.2%.
Britain's economy lost momentum in the first quarter of the year, hurt by uncertainty around the June 23 referendum on Britain's membership on the European Union, but the labour market has largely withstood the broader slowdown.
Bank of England Governor Mark Carney has said the most recent weakness in economic growth reflects the forthcoming vote, and that the economy could even tip into recession if Britain votes to leave the EU.
Figures today also show that workers' earnings, excluding bonuses, rose by 2.3% year-on-year in the three months to April compared to expectations for a 2.1% rise and up from 2.2% in the three months to March.
In April alone, regular pay growth jumped to 2.5% from 1.9% in March, the biggest rise since August last year.
The ONS said the jump was partly due to the introduction of a new higher minimum wage in April, which particularly affected the retail sector.
Total pay including bonuses rose by an annual 2%, unchanged from the previous three months. Economists taking part in a Reuters poll had expected growth of 1.7%.
Wages largely lagged the broader UK economic recovery in recent years, but the Bank of England is watching for signs of stronger pay growth as it considers when to raise rates from their record low, which economists expect will only happen next year.
The bank has said it would treat economic data around next week's referendum with caution. It will probably have to juggle a potential slump in growth against inflationary pressures from a fall in the value of sterling if Britain votes to leave the EU.
The UK government introduced a new, compulsory National Living Wage of £7.20 an hour for workers aged 25 and above in April, a 50 pence rise on the existing minimum wage.
