Wages grew faster than the rate of inflation at the end of 2016, official figures show.
In the three months to December, wages grew 2.6% on an annualised basis in the UK, according to the Office for National Statistics (ONS).
However, that was slower than the previous period, leading analysts to suggest households could face a "squeeze" on spending later this year.
The ONS also said the jobless rate held steady at an 11-year low of 4.8%.
The number of non-UK nationals working in the UK increased by 233,000 to 3.48 million compared with a year ago.
Household squeeze
"The unemployment rate is now at its lowest in over a decade, but wage growth remains subdued by historical standards," the ONS said in its commentary.
Wage growth slowed from the 2.8% rate seen in the three months to November.
Questions
1. If unemployment is so low, why haven't wages grown?
2. What factors determine wages?
3. How can a company increase wages but lower wage costs?
4. If unemployment falls, wouldn't supply of goods increase - in which case why is inflation rising?
