The unemployment rate fell to its lowest level for almost 11 years in the three months after the UK's shock vote to leave the EU.

The Office for National Statistics (ONS) reported a rate of 4.8% between July and September - a level not seen since the third quarter of 2005 - with the number of unemployed falling by 37,000 to 1.6 million.

But there was some evidence that hiring was easing as the number of people in work rose by 49,000. That was the slowest increase since the first quarter of the year.

The referendum result sparked warnings of a possible recession ahead, but the economy has proved more resilient than those forecasts suggested as consumers and businesses await details of the country's planned exit from the bloc.

New independent stats show the employment rate is the highest since records began in 1971 pic.twitter.com/H3AnLLk2oj — DWP Press Office (@dwppressoffice) November 16, 2016

Amid a looming threat to spending from higher inflation - a consequence of the pound's slump in value making overseas goods more expensive - the ONS said wages, excluding the effects of bonuses, were growing by an average 2.4% year-on-year.


That is comfortably above the current rate of consumer price inflation of 0.9%, but there are grim predictions of a new squeeze to consumer spending power in 2017.

The Bank of England sees a jobless rate of 5.6% in two years' time - at the height of the negotiations with Brussels on the terms of the UK's EU departure.

The ONS reported a larger-than-expected rise in unemployment benefit claimants in October - with the number jumping by 9,800 - but it said the figure had been revised upwards to take changes to the system into account.

It also confirmed a slowing in productivity, in statistics that will worry economists, with output per hour growing 0.2% in the third quarter of the year, down from 0.6% in the previous three months.

The ONS blamed slower GDP growth "combined with an increase in average weekly hours worked and stronger employment."

The figures were also being scrutinised for signs the Brexit vote had sparked an exodus of EU nationals.

The ONS said that limited evidence available from the Labour Force Survey suggested "the referendum outcome and subsequent devaluation of sterling has had little impact so far on the number of EU workers in the UK labour force".

Giving his reaction to the wider figures, employment minister Damian Hinds said: "Yet again we have a strong set of figures, with employment continuing to run at a record high and unemployment falling to an 11-year low.

"Growth is being fuelled by full-time professional jobs while wages are continuing to perform strongly, which underlines the resilience of the UK labour market."

But TUC General Secretary Frances O'Grady said: "Real pay growth is the slowest it's been since early 2015.

"Wages are not growing fast enough to withstand the rise in inflation expected next year.

"Without swift action from the government, working people could soon by paying the price for Brexit with another fall in living standards."