Nominal wages in the UK grew fastest in a decade but real wages are still lower than a decade ago

As widely expected, wages are rising in the UK, at least partially due to labour shortages down to Brexit. Nominal wage growth was fastest in a decade, but real (adjusted for inflation) wages are still lower than a decade ago. We recently also wrote about why wages weren’t rising despite record employment and labour shortages.

Great Britain average weekly earnings excluding bonuses annual growth rates November 2018


Looking at annual growth rates for regular pay (excluding bonuses), between July to September 2017 and July to September 2018:
Regular pay in nominal terms increased by 3.2%; the annual growth rate has not been higher since October to December 2008
Regular pay in real terms increased by 0.9%, the annual growth rate has not been higher since October to December 2016

 

Great Britain average weekly earnings excluding bonuses November 2018

For September 2018, average regular pay (excluding bonuses), before tax and other deductions from pay, for employees in Great Britain was:
£493 per week in nominal terms (that is, not adjusted for price inflation), up from £478 per week for a year earlier
£463 per week in constant 2015 prices (that is, adjusted for price inflation), up from £458 per week for a year earlier, but £10 lower than the pre-downturn peak of £473 per week for March 2008

 

Great Britain average weekly earnings including bonuses annual growth rates November 2018

Looking at annual growth rates for total pay (including bonuses), between July to September 2017 and July to September 2018:
Total pay in nominal terms increased by 3.0%, the annual growth rate has not been higher since July to September 2015
Total pay in real terms increased by 0.8%, the annual growth rate has not been higher since October to December 2016

 

Great Britain average weekly earnings including bonuses annual growth rates November 2018

For September 2018, average total pay (including bonuses), before tax and other deductions from pay, for employees in Great Britain was:
£524 per week in nominal terms, up from £510 per week for a year earlier
£493 per week in constant 2015 prices, up from £490 per week for a year earlier, but £29 lower than the pre-downturn peak of £522 per week for February 2008

Related:

Here’s why wages aren’t rising despite record employment and labour shortages

The UK economy a decade on from the 2008 recession

The Real Economics of Brexit

 

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