Unemployment rose by 31,000 to 1.33 million in the three months to June, official figures showed.
The rise in unemployment was the biggest since 2017.
Average earnings increased by 3.7% compared with 3.4% in the previous month, said the Office for National Statistics.
There were still 115,000 new jobs created during the period.
Over the last six months the number of vacancies has been falling with fewer now than this time last year.
Chancellor of the Exchequer, Sajid Javid, said: “Every person deserves the chance to succeed and provide for their families through a steady income. I’m pleased to see 2.9 million more people are in work every day since 2010, wages are rising at their fastest in more than a decade, and people across the UK are taking home more of what they earn.
“Thanks to the hard work of the British people and the government, we can further invest in our public services. And today’s figures are another sign that despite the challenges across the global economy, the fundamentals of the British economy are strong as we prepare to leave the EU.”
There are 3.8 million more people in work (including full-time and part-time) since 2010.
62% of employment growth in the last year was driven by full-time work.
Over 60% of employment growth over the past year was outside London and the South East.
Youth unemployment has fallen by 46% since 2010, from 939,000 to 502,000.
Female unemployment is at a record low of 3.6%.
85% of employment growth since 2010 is in high skilled jobs.
ONS deputy head of labour market statistics Matt Hughes said: “Employment continues to increase, with three-quarters of this year’s growth being due to more women working.”
“However, the number of vacancies has been falling for six months, with fewer now than there were this time last year.”
“Excluding bonuses, real wages are growing at their fastest in nearly four years, but pay levels still have not returned to their pre-downturn peak.”
