Workers are

facing a tighter squeeze on their living standards as wage growth begins to slow.

According to the Office for National Statistics, salaries grew 3.3% year on year in the three months to March. That’s down from the 3.5% growth recorded in the three months to February and comes as employment soars to a new high of 32.7 million.

ING economist James Smith said: “Warning signs suggest the jobs market is entering a turbulent period.”

Productivity is also falling with ONS data showing output per hour dropped by 0.2% in the first quarter.