LATEST government employment figures yesterday once again exposed the much-vaunted economic recovery’s reliance on part-time and low-paid work.

Unemployment dipped by 154,000 in the quarter to August to 1.97 million, the lowest for eight years.

But although the number of unemployed has fallen, so has the real value of wages.

And those classed as “economically inactive” — including students, long-term sick and early retirees — increased by 113,000 in the latest quarter to more than nine million.

The number of self-employed people is 279,000 higher than a year ago — 15 per cent of the workforce.

Part-time workers are at a record high of 6.8 million.

TUC general secretary Frances O’Grady said: “With these never-ending falls in living standards and so many new jobs insecure, low-paid and self-employed, Britain’s workers have been excluded from the recovery.

“It is time to share out the proceeds of growth by creating good jobs and giving people a decent wage increase. Tens of thousands will be joining the TUC’s march on Saturday to say Britain needs a pay rise.”

Labour shadow work and pensions secretary Rachel Reeves pointed out that workers’ real wages had fallen by over £1,600 a year since 2010.

“The government’s failure to act on low pay has led to millions of people struggling to get by, huge additional costs in housing benefit and tax credits paid to those in work, and the OBR (Office for Budget Responsibility) warning about the impact on the public finances,” she said.