Unemployment fell by a fifth of one per cent to 4.4 per cent for the three months to June, its lowest level since 1975.
Despite the positive numbers, Ms Smith warns that the "proportion of the workforce that might be low earners, as well as the growing numbers of self-employed and gig economy workers" should be considered.
The jobs report comes after data showed inflation remained unchanged in July at 2.6%. There were also signs the decision to leave the European Union is having an impact on foreign workers.
GDP growth is estimated to have been just 0.3 per cent in the second quarter of 2017, following 0.2 per cent growth in the first quarter.
Output per hour worked fell 0.1% in Q2 after a drop of 0.5% in Q1, according to a "flash" estimate from the Office for National Statistics (ONS) today.
The June 2017 labour market data from the Office for National Statistics (ONS) shows that, from April to June, there were 32.07 million people in work, which is 125,000 more than in the January to March period and 338,000 more than the same period previous year. Economists taking part in a Reuters poll had expected wage growth of 1.8 percent.
"Though it continues to lag behind inflation, the squeeze on real wage growth has eased slightly on the basis of this month's figures", PwC senior economic adviser, Andrew Sentance, said.
Excluding bonuses - which analysts say gives a better picture of the underlying trend - earnings in nominal terms rose by 2.1 per cent year on year, the fastest rate since January and beating expectations for a two per cent rise.
"Mark Carney, Governor of the Bank of England, has frequently cited accelerating wage growth as a possible trigger for the long-awaited increase in United Kingdom base rates but today's figures are hardly likely to persuade the Monetary Policy Committee that the United Kingdom economy is overheating and in need of higher borrowing costs". It expects wages to rise by two per cent this year before picking up in 2018 and 2019.