Highlights

LMSB SA AWE total pay WE

£ 505

2016 SEP

Release date:
16 November 2016

Next release:
14 December 2016
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Index of UK labour costs per hour, experimental: Apr to June 2016

What's in the bulletin?

  • The whole economy Index of Labour Costs per Hour (ILCH), seasonally adjusted, increased by 2.9% in Quarter 2 (Apr to Jun) of 2016, compared with the same quarter of 2015 and increased by 0.8% compared with the previous quarter, Quarter 1 (Jan to Mar) 2016.
  • Wage costs per hour worked increased by 3.1% in the first quarter of 2016 on the same quarter in the previous year and non-wage costs per hour worked increased by 0.8%.
  • Private sector labour costs per hour increased by 3.2% in the first quarter of 2016 on the same quarter in the previous year, while public sector labour costs per hour increased by 0.8%.
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Articles

  • Average Weekly Earnings, Bonus Payments in Great Britain: 2014/15

    This article examines total bonus payments received across the whole economy of Great Britain in the financial year ending 2015 (April 2014 to March 2015) with analyses presented by month of pay, sector and industry. The industry level contribution to the change in whole economy bonus payments between the financial years ending 2014 (April 2013 to March 2014) and 2015 is also analysed, as is the average bonus payment per employee. A number of businesses that responded to the Monthly Wages and Salaries Survey (MWSS) reported that they paid their bonuses in March 2012 but in April 2013, and to a lesser extent, April 2014. This shift in bonus season was partly due to companies deferring bonus payments until after the change in tax rates at the beginning of the financial year ending 2014. Thus, it is useful to examine bonuses paid in the period May to April to present a complete picture of how bonus payments changed on a like-for-like basis between this time period in 2013 to 2014 and 2014 to 2015. This article focuses on bonus payments paid during the financial year ending 2015; however payments made during the period May 2014 to April 2015 are also analysed. All figures are derived from the Average Weekly Earnings (AWE) dataset, part of the Labour Market Statistics release.

  • Changes in real earnings in the UK and London: 2002 to 2012

    Average earnings of employees in the UK have fallen in real terms since 2009. Average earnings in real terms are now at similar levels to those of 2002-03. There are some geographical differences. For instance, employees working in London earn more on average than UK employees and their average real earnings fell less rapidly than the UK average from 2010 to 2012. There are also differences between full-time and part-time employees in the private and public sectors. The decline in real wages has short-term implications for the economy and economic indicators. It is possible that it also marks a permanent change in long-term wage growth trends, but it is too early to be sure about this.

  • Contracts with No Guaranteed Hours: 2015

    Latest figures from the Labour Force Survey (LFS) show 744,000 people are employed on a “zero-hours contract” in their main job. This represents 2.4% of all people in employment, an increase of 0.4% from the same period in 2014. People on a “zero-hours contract” are more likely to be women, in full-time education or in young or older age groups. They are likely to work 25 hours a week.

  • Public and Private Sector Earnings: March 2014

  • Understanding average earnings for the continuously employed: Using the Annual Survey of Hours and Earnings 2014

    This paper provides additional information and guidance on how to interpret average earnings data for the “continuously employed”. It has a particular focus on the difference between the published rate of growth in median gross weekly full-time earnings for all employees of 0.1% in 2014 compared with those identified as being in continuous employment of 4.1% (ONS 2014). Continuous employment is defined in this article as being in the same job for at least 12 months.

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