Real wages fall despite low levels of unemployment

Average earnings of UK workers are now no higher than they were in February 2006, official figures reveal

• Rising inflation " you can't blame the worker this time

The lowest levels of unemployment since the mid-70s are still failing to boost the bargaining power of workers in the UK, as official figures show Britain's pay squeeze entered its sixth month.

Average earnings excluding bonuses increased by 2.1% in the three months to August, down from 2.2% in the three months to July after a revision to the earlier figures, according to the Office for National Statistics. City economists had forecast growth of 2%.