LONDON--The U.K. labor market remained strong into 2015, official figures showed Wednesday, but weaker-than-expected wage growth suggested households are only gradually reaping the benefits of the economic recovery. The share of the British population over 16 in employment hit a new record in the three months to January, according to the Office for National Statistics. The employment rate was 73.3%, the highest figure since records began in 1971. The jobless rate--which is calculated over those in employment or looking for a job--remained at 5.7%, the same as in the final quarter of 2014 and joint-lowest since early 2008. However, wages got off to a disappointing start in January. Average weekly earnings grew 1.8% on the year in the three months to January, the ONS said. This is a much slower pace than most economists were expecting. Median forecasts by analysts polled by The Wall Street Journal last week suggested wages would have risen by 2.2%. Although subdued prices continued to boost the purchasing power of consumers--the positive gap between wage growth and headline inflation was the widest since mid-2008--weaker paychecks raise concerns that the recent lift in living standards may be short-lived after the effects of cheaper oil have worn off. The cost of living is a key battleground for the ruling coalition government ahead of May's general election, after Britons endured a five-year-long squeeze in their living standards that only recently started to reverse. In his annual budget statement later Wednesday, Treasury chief George Osborne is expected to announce policies designed to support pay growth. The government said this week that the national minimum wage for adults will increase to GBP6.70 an hour from October--the highest raise of the minimum wage in real terms in seven years and is estimated to benefit about 1.4 million workers. Write to Jon Sindreu at jon.sindreu@wsj.com and Nick Winning at nick.winning@wsj.com

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