The East of England currently has the highest employment rate in the UK, according to new figures.

Data from the Office for National Statistics has revealed that, between April and June of this year, 78.4% of people aged between 16 and 64 were undertaking an hour or more of paid work per week.

However, the news comes as the average national rate of pay has seen the fastest fall on record during the same period.

Despite average wages rising by 4.7%, the "real value" of pay dropped by 3% when compared with inflation.

"Even though we're seeing a high employment rate, which is great news, it doesn't quite show the full picture," said Nicky Willshire, chief officer at Ipswich Citizens Advice.

"There might be an awful lot of employment but a lot of the jobs are relatively low paid. Better paid jobs just aren't available.

"We're in a cost of living crisis so the price of everything is going up."

From a business perspective, a number of organisations have reported the double threat of declining sales and rising supplier costs.

Last month, Gfk's long-running Consumer Confidence Index languished at a historic low last month, with confidence in the general economic situation dropping to lower than July last year.

In a bid to combat lower revenues, a number of outlets have been forced shorten their opening hours or temporarily close.

"It's such a complex situation because businesses physically can't offer pay increases", said Nicky.

"They just don't have the funds to offer this in line with a rise in the cost of living.

"The money just isn't there."

Paul Simon, head of public affairs and strategic communications at Suffolk Chamber of Commerce, said: “The local and regional economic picture is certainly confusing.

"Good news data such as historically high employment rates and wage rises – albeit beneath inflation – sits awkwardly with other business realities such as rising raw material and component costs, supply chain glitches and skills shortages, plus business forecasts of declining cash flow, profitability and turnover – the absolutely essential business metrics."