The number of temporary employees fell by 2.6% to a total of 1.60 million in the three-month period of December 2016 to February 2017 when compared to the same period a year ago, according to seasonally adjusted figures by the Office for National Statistics (ONS).

ONS figures also showed that the employment rate (the proportion of people aged from 16 to 64 who were in work) was 74.6%, the joint highest since comparable records began in 1971. There were 31.84 million people in work, which was 312,000 more than for a year earlier. When compared to the previous period of September to November 2016 the figure increased by 39,000.

The unemployment rate was 4.7%, down from 5.1% for a year earlier. It has not been lower since June to August 1975. The unemployment rate is the proportion of the labour force (those in work plus those unemployed) that were unemployed. There were 8.88 million people aged from 16 to 64 who were economically inactive (not working and not seeking or available to work), 10,000 fewer than for September to November 2016 and 36,000 fewer than for a year earlier.

The inactivity rate (the proportion of people aged from 16 to 64 who were economically inactive) was 21.6%, slightly lower than for September to November 2016 (21.7%) and for a year earlier (21.8%).

The data from ONS also showed that average weekly earnings for employees in the UK in nominal terms (that is, not adjusted for price inflation) increased by 2.3% including bonuses, and by 2.2% excluding bonuses, compared with a year earlier. In real terms (adjusted for price inflation), average weekly pay increased by 0.2% including bonuses, and by 0.1% excluding bonuses, compared with a year earlier.

Meanwhile, in the period from January to March 2017, there were 767,000 job vacancies, which was 14,000 more than for a year earlier.

Kevin Green, Recruitment & Employment Confederation chief executive, commented on the figures, “The labour market is moving in a positive direction, with employment at a record high and unemployment still falling. Our monthly jobs report shows placements via recruiters are increasing and demand for staff is at an 18 month peak, so it's likely employment numbers will continue to creep up.

“However, wage growth is slowing as inflation is rising, meaning people are feeling the pinch as their take home pay doesn’t stretch as far,” Green said. “Our data shows employers are increasing starting salary offers to compete for the limited talent available. People will be tempted to move jobs as a way of increasing income, especially if pay in their current role remains static. As demand for staff increases yet supply of candidates deteriorates, employers need to reward their staff so they retain them.”

“It’s already really tough to find candidates and skills shortages have been intensifying. Sectors across the economy, from healthcare to food manufacturing, are reliant on EU workers. They’re getting increasingly worried about how they’ll cope if recruiting from abroad becomes even harder post-Brexit.”