The number of people with a job in the UK went up by nearly 250,000 in the three months to February while salaries are at last increasing faster than inflation.

Figures from the Office for National Statistics (ONS) show that 239,000 extra people had a job in February compared with November, while the number of employed people dropped 77,000.

At just over 30 million, the number of people in work has maintained its highest mark in a generation.

The unemployment rate dipped below seven per cent for the first time since April in five years, with 2.24 million working age people out of a job.

Meanwhile annual average earnings climbed 1.9 per cent last month, moving higher than the headline rate of inflation, at 1.7 per cent, for the first time in a year.

But Mark Beaston, chief economist at employment lobby group the CIPD, said earnings growth was not in evidence across the board.

“Higher bonuses have been a factor and the growth rate of regular pay, at 1.4%, is still below all measures of inflation,” he said.

“Earnings growth has also been concentrated of late in wholesale and retail, hotels and restaurants, manufacturing and construction and may in part be due to more hours being worked rather than an increase in hourly pay.

“Pay awards in general are not showing signs of significant acceleration and if headline inflation remains below 2% this year that might take the edge off any build up in pressure on employers.”