WORKERS are enjoying the strongest rise in real terms regular pay for more than a decade but the number of those without work is rising, according to official figures.

Near-zero inflation means wage growth is having a bigger impact than it has had at any time since August 2002.

But figures from the Office for National Statistics (ONS) show unemployment has risen for a third month in a row - the first time this has happened since 2011.

The surge in pay growth could add to expectations about the time for an interest rate hike nearing, despite inflation currently being zero.

It may encourage those Bank of England officials who argue that underlying inflationary pressures are building.

Total pay rose 2.9 per cent year-on-year in the three months to July, according to the ONS.

Regular pay, excluding bonuses, was also up 2.9 per cent. This was the strongest since February 2009.

Real terms regular pay was also up by 2.9 per cent, the strongest rate since the three months to August 2002, when it climbed by three per cent.

But the figures also showed joblessness grew by 10,000 between May and July, to 1.82 million. The unemployment rate was 5.5 per cent.

However the number of people in work also rose, from 42,000, to 31.09 million, in the period. The employment rate - or proportion of people aged 16 to 64 in work - was 73.5 per cent.

Meanwhile the number of people claiming unemployment-related benefit rose by 1,200 to 791,700 last month, though a fall in the claimant count last year was revised to show it was bigger than first thought.

ONS statistician Nick Palmer said: "Although there has been a small rise in the unemployment level, employment is also up on the previous three months, with its headline rate returning to a record high.

"Meanwhile regular pay - not including bonuses - is growing at its fastest rate for over six years."