All posts by Alastair Hatchett

Earnings growth wiped out by higher inflation

The latest average weekly earnings figures from the ONS show that pay growth in the private sector was 2.7% in the year to March, up from 2.5% in the year to February. This slightly higher rate of growth meant that the whole economy figure for average earnings rose from 2.3% in February to 2.4% in the year to March. Meanwhile, average weekly earnings in the public sector dropped back slightly from 1.4% in February to 1.2% in March. Continue reading Earnings growth wiped out by higher inflation

Earnings growth remains steady at 2.3% in February

Average weekly earnings rose by 2.3% in the year to February, the same as in the year to January.  Previously the ONS put the January figure at 2.2%, but this has been revised up to 2.3% in the latest figures. Looking back at the rate of growth in earnings over the past ten months we can see the rate has been fairly steady at around 2.4 to 2.5%. All these figures are for total earnings, across the whole economy, which include bonuses. Continue reading Earnings growth remains steady at 2.3% in February

Earnings growth drops further to 2.2%

Growth in average earnings weakened further in the year to the end of January, according to the latest data from the Office for National Statistics. Much of the fall is due to lower bonuses, but ‘regular pay’, that is growth excluding bonuses, was also lower than previously in most areas of the economy.

Average weekly earnings rose by 2.2% in the year to January, down from 2.6% in the year to December and 2.8% in the year to November. These figures are for total earnings, including bonuses, across the whole of the economy. Excluding bonuses, the annual rate of increase in the year to January was 2.3%, down from 2.6% in December. Continue reading Earnings growth drops further to 2.2%

Average weekly earnings growth slows a little

Average weekly earnings growth in the year to August slowed marginally to 2.3%, down from 2.4% in July. The slowing took place entirely in the private sector. Earnings growth in the private sector was 2.3% in August, down from 2.5% in July. By contrast, earnings in the public sector grew by 1.9% in August, up from 1.6% in the year to July.

The slower growth occurred mainly in three parts of the private sector: finance and business services, manufacturing, and construction. In finance and business services, earnings growth fell back from 3% in July to 2.6% in August. In manufacturing, earnings growth slipped from 2.5% in July to 2.3% in August. However, this rate remains higher than in the past two years when earnings growth was between 1.5 and 1.7%.

Alastair Hatchett
Visiting Fellow, University of Greenwich

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Average Weekly Earnings

Earnings growth steady at 2.4%

Earnings growth remains steady, according to the latest figures from the Office for National Statistics. Average weekly earnings across the whole economy grew by 2.4% in June, up slightly on the rate of growth of 2.3% in May.

In the private sector, average weekly earnings grew by 2.5% in the year to June. This was the same as in the year to May, but above the lower levels seen in the spring. Earnings growth in the public sector was 1.9% in the year to June, the same as in the year to May, but also higher than earlier in the year. Continue reading this free article

Earnings show signs of growth in most sectors

Earnings growth looks to have picked up a little, according to the latest data on average weekly earnings from the ONS. Average earnings grew by 2.3% across the whole economy for the three months to May, compared to the same period a year ago. This is up from 2.0% for the three months to April, compared to the same period last year. Some sectors showed much greater increases than previously. In finance and business services, average weekly earnings rose by 2.8%, up from 1.7% in the year to April. In manufacturing, earnings growth was 2.2% in May, up from 1.7% in April. Continue reading this free article

National Living Wage has only a small effect on earnings figures

The introduction of the National Living Wage (NLW) in April appears to have only had a minor effect on the latest Average Weekly Earnings (AWE) figures. The earnings data released today by the ONS are for the period to the end of April 2016 and the figures were expected to show a boost to earnings in the lowest-paid sector, that covering wholesale, retail, hotels and restaurants. However total pay growth in this large sector for the period from February to April 2016 was comparatively modest at 1.3%, up slightly on the even weaker three-month average of 1.0% for January to March. Continue reading this free article

Earnings grow at 2% but wide sectoral differences remain

Average weekly earnings continue to grow at around 2% across the economy, down from the 3% level seen last summer, but there are wide variations between the different sectors. In the latest figures released by the ONS on 18 May, strong earnings growth has continued in construction, while in the lower-paying sector of retail and hospitality, earnings growth has dropped sharply, to 1% in March. Continue reading Earnings grow at 2% but wide sectoral differences remain

Fall in City bonuses pushes average earnings growth down to 1.8%

Average weekly earnings growth in the whole economy dropped back to 1.8% in the three months to February, from 2.1% in January, but this was almost entirely caused by a substantial fall in bonuses in the finance and business services sector. Some commentators have pointed to a shift from bonuses to basic pay in this sector. Continue reading Fall in City bonuses pushes average earnings growth down to 1.8%