LATEST employment figures "hide the real story of the labour market under this government,” Labour said today.

According to the Office for National Statistics (ONS), there has been a rise in the number of people in work while average earnings have grown marginally faster than inflation.

The ONS found that employment increased by 3,000 in the three months to July to 32.4 million, and that average earnings were up by 2.6 per cent in the year to July, compared with the latest consumer prices index rate of inflation of 2.5 per cent.

But shadow work and pensions secretary Margaret Greenwood said the new figures did not change the fact that “people are earning less than they did in 2008 and millions of workers are stuck in insecure jobs.”

She added: “More families are working harder to get by, but the rising cost of living and low pay means that a job is no longer a reliable route out of poverty.

“We desperately need change. That’s why the next Labour government will make tackling the crisis in low pay and insecure work a priority.”