Unemployment has increased by 13,000 but the number of people claiming Jobseeker's Allowance has fallen for seven consecutive months, figures show.
The number of people out of work in the three months to March was 1.7 million, the worst figure since last autumn and up by 101,000 over the year.
The claimant count, which only covers people on Jobseeker's Allowance, fell by 15,700 to 890,000, the lowest since October 2005.
It has fallen for nine out of the last 10 months.
Average earnings - including bonuses - increased by 4.5%, down 0.1% on the previous month, which had been the highest since March 2004.
The Office For National Statistics said the fall was prompted by a lower growth in bonuses.
Other data showed that the number of people in work fell by 55,000 over the previous three months but rose by 93,000 over the year to 28.98 million.
In the three months to March, 145,000 people were made redundant, up 15,000 from the previous three months and the highest figure since last spring.
There were 13,000 working days lost due to industrial disputes, a significant rise from the 4,000 days lost in February.
