UK unemployment fell by 75,000 in the three months to July.

The fall brings the jobless rate down to 4.3% from 4.4% in the previous quarter.

The rate remains at its lowest since 1975, but a squeeze on real incomes continues, according to the Office for National Statistics figures.

Wages in the period were 2.1% up on a year earlier, little changed from the previous months' growth rates.

With inflation hitting 2.9% in August, wages are failing to keep up. In real terms, wages dropped by 0.4% in the three months to July.

Speaking on the BBC, Matt Hughes, a senior ONS statistician, said: "Another record high employment rate and a record low inactivity rate suggest the labour market continues to be strong."

He added that the number of people aged 16 to 64 not in the labour force because they are looking after family or home is the lowest since records began, at less than 2.1 million.

Inflation has picked up sharply since the pound fell after the Brexit vote last year.

The BBC said the data could further divide the Bank of England's Monetary Policy Committee, which sets interest rates.

While stagnating wage growth suggests the current surge in inflation could ease, growth in job hires points to greater strength in the economy.

Paresh Davdra, CEO and co-founder of Rational FX, said: "The pound has fallen against the dollar following the release of UK jobs data. Despite unemployment figures falling to a 42-year low, a further fall in real wages has concerned analysts, with weekly earnings only rising below expectation by 2.1% per year by quarter.

"The squeeze in living standards is a real concern on the financial capabilities and progress of consumers, especially as the UK will now embark on an uncertain future outside of the EU.

"With the continued lack of direction for the country, along with any substantial plans materialising for a post-Brexit era, businesses will continue to operate on a short-term outlook, rather than on a long-term outlook.

"With the rising inflation squeezing the living standards, it could very well deter the Bank Of England from raising interest rates any time soon, further complementing the pressure on the pound."

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