The UK unemployment rate rose slightly to 3.6% in the three months to September, up from 3.5% in August, official figures show.
Pay rose at its fastest rate outside the pandemic but continues to lag behind the cost of living.
When adjusted for rising prices, wages fell by 2.7% in the year to September.
The Bank of England has predicted that the UK is facing its longest recession since records began as inflation soars in part due to the war in Ukraine.
On Thursday, the chancellor will set out his plans to shore up the public finances, with spending cuts and tax rises expected.
Commenting on the latest unemployment figures, Jeremy Hunt said joblessness remained near record lows, but added "people's hard-earned money isn't going as far as it should".
"Tackling inflation is my absolute priority and that guides the difficult decisions on tax and spending we will make on Thursday."
But Labour's shadow chancellor, Rachel Reeves, said the UK was paying for "12 years of Tory economic mistakes".
"Real wages have fallen again, thousands of over-50s have left the labour market and a record number of people are out of work because they're stuck on NHS waiting lists or they're not getting proper employment support."
Source: BBC
Image source: Pixabay
