Average earnings growth rises but remains modest

Average weekly earnings growth across the UK economy rose marginally in January to 2.1%, according to the latest figures from the ONS (16 March). It had been falling – from 3.0% in September to 2.4% in October, to 2.1% in November and 1.9% in December – so the latest figures could indicate a recovery in wages. However the figures will have to indicate further growth before a rising trend can be said to have been established. Continue reading Average earnings growth rises but remains modest

Earnings growth weakens to 2% as economy falters

Growth in earnings looked to have slowed considerably towards the end of last year, according to the latest average weekly earnings figures from the ONS (20 January). These show that average weekly earnings rose by 2.0% across the whole economy in the year to November 2015, down from 2.4% in October and from 3.4% in the year to September. Continue reading Earnings growth weakens to 2% as economy falters

Inflation to return to an upward trend?

shutterstock_361657682The all-items Retail Prices Index rose to 1.2% per cent in the year to December 2015, up from 1.1% in the year to November. The main factor behind the modest rise in inflation is transport costs, particularly air fares but also, to a lesser extent, motor fuels. Air fares usually rise by around a fifth at this time of year. However this year they rose by almost a half, reflecting strong demand from consumers. Meanwhile petrol prices fell, but by less than a year ago, producing an upward pressure on inflation. Looking at downward effects, food prices continued to fall, but this was not sufficient to offset the upward effects from air fares and petrol. Continue reading Inflation to return to an upward trend?

Earnings growth slips back to 2.4%

shutterstock_234775651Average weekly earnings rose by 2.4% in the whole economy in the year to October 2015, down from 3.0% in the year to September, according to figures released by the ONS on 16 December. Earnings growth in the private sector slipped back from 3.4% in September to 2.7% in October, in part because of lower pay growth in finance and business services. Meanwhile pay growth in the public sector rose slightly from 1.4% in September to 1.6% in October, but remains weak. Continue reading Earnings growth slips back to 2.4%

Faster pay growth in retail lifts private sector earnings

Alastair Hatchett, Visiting Fellow, University of Greenwich

Average weekly earnings grew by 3.0% in the year to August, up from 2.9% in the year to July, according to figures released by the ONS on 14 October 2015. The rate of growth in the private sector was 3.4%, compared to just 1.2% in the public sector. Continue reading Faster pay growth in retail lifts private sector earnings

Earnings growth strengthens but not in manufacturing or the public sector

 Average weekly earnings across the whole economy grew by 2.9% in the year to July, as shown by the figures released by the ONS today. This year has seen higher earnings growth than in the previous five years, but the picture is varied. Overall, there is strong earnings growth in the private sector, running at 3.4% in July, compared with 2.2% in January.* However earning growth remains weak in the public sector, running at just 1.1% in July, down on 1.3% in January. Continue reading Earnings growth strengthens but not in manufacturing or the public sector

The ‘National Living Wage’

The big remuneration story is the Government’s new ‘National Living Wage’, due to come in from next April. It will apply to workers aged 25 or over and will initially be set at £7.20 an hour. This is 50p more than the level that the existing National Minimum Wage for employees aged 21 and over will have reached at that point, having been increased by 3% from 1 October 2015. However, this premium could reduce after just six months of the NLW’s existence, if the NMW rises further from 1 October 2016, as it was set to do, before the announcement of the NLW on 8 July. Continue reading The ‘National Living Wage’