Unemployment is down – but the rise in earnings is only due to bonuses

Bonuses paid to small segment of workforce - Bank of England optimistic in forecast that earnings growth will be up to 3.5% by end of year

The latest unemployment figures have left ministers purring. Employment is at record levels, said Iain Duncan Smith. Unemployment is continuing to fall and wages are rising. All evidence that the government's economic plan is working, according to the work and pensions secretary.

In truth, the latest news from the labour market is a bit more nuanced. More jobs are certainly being created. There were almost 31 million people in work in the last three months of 2014, an increase of 103,000 on the previous quarter and up 608,000 up on October to December 2013.