The UK’s unemployment rate has fallen slightly, official figures show.

Unemployment was 4.2% in the three months to the end of June, down from 4.4% over the previous quarter.

Meanwhile, wage growth continued to slow, rising at an annual rate of 5.4% – the weakest for around two years.

However, the Office for National Statistics (ONS) said pay growth remained “relatively strong” with earnings continuing to rise faster than prices.

ONS director of economic statistics Liz McKeown said the outlook for the UK jobs market remained “a mixed picture”, and that there were signs it is starting to cool.

“Basic pay growth (excluding bonuses), while remaining relatively strong, continues to slow,” she told the BBC’s Today programme.

“Growth in total pay slowed markedly, with last year’s one-off NHS bonuses affecting the comparison,” she said.

While the number of job vacancies also dipped, the total number remains above levels seen before the pandemic.

The ONS has urged caution, however, about giving too much weight to its jobs figures at the moment.

The Labour Force Survey conducted by the ONS, which produces the data, has had a smaller number of respondents over the past year than normal.

Chancellor Rachel Reeves said the latest numbers showed there was “more to do in supporting people into employment”.

“This will be part of my Budget later in the year where I will be making difficult decisions on spending, welfare and tax to fix the foundations of our economy so we can rebuild Britain and make every part of our country better off.”