The UK unemployment has fallen to its lowest level in 42 years, with the unemployment rate falling to just 4.6 percent.

According to figures from the Office for National Statistics released on Wednesday, the number of people unemployed fell by 53,000 to 1.54 million in the three months to March.

This significant increase drove the employment rate to a new record high of 74.8 percent.

However, the gap between inflation – at 2.7 percent in April – and basic pay growth – 2.1 percent between January and March – has widened, driving real wages down and creating difficulties for the average household consumer as Britain prepares to leave the European Union.

Professor Geraint Johnes, Director of Research at the Work Foundation, told the Guardian that Wednesday’s figures constitute a “remarkably strong performance”, but added that the data was “less encouraging” concerning pay.

“The pay data indicates a collapse in wage settlements in the construction industry, and this is significant because much of the employment growth in the last part of 2016 came from that sector.

“While welcoming the strong employment growth evidenced in the first quarter’s figures, sustaining this into the longer term may therefore prove challenging,” he said.