UK Average Regular Earnings Growth Reaches 4.8%: Insights from ONS Report
The Office for National Statistics (ONS) reported last month growth in regular earnings. Between July and September 2024, the annual growth in average regular earnings, excluding bonuses, reached 4.8%. This growth rate reflects the ongoing dynamics within the UK economy as it navigates a complex economic landscape shaped by inflationary pressures, interest rate adjustments, and changing labour market trends.
The report summarised:
Annual growth in employees’ average regular earnings (excluding bonuses) was 4.8%; growth was previously lower than this in April to June 2022, when it was 4.7%.
Annual growth in total earnings (including bonuses) was 4.3%; this total growth rate is affected by the civil service one-off payments made in July and August 2023.
Annual growth in real terms, adjusted for inflation using the Consumer Prices Index including owner occupiers’ housing costs (CPIH), was 1.9% for regular pay and 1.4% for total pay.
Annual average regular earnings growth for the public sector was 4.7%, down on the previous three-month period when it was 5.2%.
Annual average regular earnings growth for the private sector was 4.8%, the same as the previous three-month period; growth was previously lower than this in December 2021 to February 2022, when it was 4.6%.
The manufacturing sector saw the largest annual regular growth rate again, at 6.0%.
The estimates in the ONS bulletin come from a survey of businesses. It is not possible to survey every business each month, so these statistics are estimates based on a sample, not precise figures. Average weekly earnings (AWE) for any given month are the ratio of estimated total pay for the whole economy, divided by the total number of employees. As a result, AWE is not a measure of rates of pay and can be affected by changes in the composition of an enterprise’s workforce.
Source: ONS
