The rate of employment in the UK continued to rise, as a record high 32.6 million people were in work between October and December.
Average earnings including bonuses did not perform as expected, remaining unchanged at 3.4 percent rather than rising to 3.5 percent as forecast.
However, average earnings excluding bonuses came in at 3.4 percent as predicted.
Wages are currently growing at the fastest pace in 10 years.
While the employment stats were largely positive, the GBP/USD exchange rate failed to rise, with demand for the pound still limited in light of wider economic concerns.
Ongoing Brexit anxieties and the announcement made today that Japanese carmaker Honda plans to close its factory in the UK (that employs 3,500 people) conspired to keep Sterling under pressure.
GBP/USD did manage to edge higher yesterday however as hopes that the US and China will soon reach a trade agreement reduced demand for safe-haven currencies.
Today will host the first day of US-China trade talks in Washington, with follow-up sessions scheduled for later in the week.
In a statement the White House said the aims of the talks will be: “Achieving needed structural changes in China that affect trade between the United States and China. The two sides will also discuss China’s pledge to purchase a substantial amount of goods and services from the United States.”
As there is a lack of influential UK economic data tomorrow, Brexit will remain in the spotlight as discussions continue in Brussels.
The publication of minutes from the Federal Reserve’s last policy meeting will also be of interest.
If the minutes add to expectations that the Fed will raise interest rates less frequently this year the US dollar could be pressured lower.
The minutes are due to be released at 19:00 GMT tomorrow.