Bank of England economists will be scratching their heads ahead of next week's interest rate decision after official data offered a mixed view of the labour market.
Wage growth rose by 5.9% in the three months to April, according to the Office of National Statistics, its highest rate since the pandemic, highlighting strength in the economy and indicating there is some way to go before rates can be cut.
When accounting for inflation, wages rose by 2.7% between February and April, marking the single largest three-month jump since September 2021 and the highest since 2015 excluding the pandemic.
Bank of England economists have previously said wage growth must not threaten inflation and should be rising modestly before they can feel confident about cutting borrowing rates
However, in contrast, unemployment figures also soared to their highest level since the pandemic, rising 4.4% in the same period.
Analysts had expected jobless rates to remain unchanged from the 4.3% jump seen in three months to March.
Kathleen Brooks at XTB said: "The market is now pricing in the chance of an August cut with a 40% probability, however, there is still only one cut fully priced in for the UK this year.
"We think an August rate cut is still unlikely, however, the movement in interest rate expectations could keep the pound under pressure on Tuesday."