"Despite these buoyant job numbers, earnings growth has drifted up only slowly from last year's lows. But with skills shortages emerging, and the jobless rate set to fall further, we see earnings growth accelerating through this year and next."
Total average earnings in the three months to February rose 1.7 percent compared with the same period a year earlier, and down from 1.9 percent in January.
The closely-watched jobs data, which comes just three weeks ahead of a tight general election on May 7, lifted sterling to a one-month high above $1.50.
Sterling, which has been hurt by uncertainty ahead of the election, has added 2.7 percent in the past week. This puts the currency on track for its best performance since October 2009, according to Reuters data.
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"Cable (pound/dollar) has been under relentless pressure over the past month on political rather than economic concerns as fears have risen that the Tories may lose their grip on power allowing a much less market friendly Labor government to take over," said Boris Schlossberg, managing director of currency strategy at BK Asset Management, in a note. Britain's ruling Conservative Party is also referred to as the Tory party, or Tories.
"However the latest labor data should provide a small boost to the Tories as it shows that the recovery remains on track. If the polling data confirms that thesis, cable could see stronger gains ahead," Schlossberg added.