Average weekly earnings excluding bonus payments rose by 1.2% comparing November 2012 to January 2013 with the same period a year earlier. The annual growth in earnings was lower than the 1.3% reported for October to December 2012 and only just above the all time low in earnings growth which was 1.1% towards the end of 2009. In cash terms, average weekly earnings excluding bonus payments were £442 in January 2013, before taxes and other deductions from gross pay; this is up from £438 a year earlier.
There continues to be a cut in the real value of pay, as inflation measured by the Consumer Prices Index was 2.7% between January 2012 and January 2013. The annual growth in weekly wages excluding bonuses has been continuously below inflation since August to October 2009.
Including bonus payments the average weekly wage rose by 1.2% comparing November 2012 – January 2013 with the same period a year earlier. At £470 in January 2013, wages including bonus payments were £5 per week higher than January 2012.
Wages rise in manufacturing and services but fall in construction
Looking at the main sectors of the economy in November 2012 – January 2013, earnings excluding bonuses rose by 1.9% on the year in the manufacturing sector, rose by 1.3% in the service sector and fell by 0.9% in the construction sector. The manufacturing sector had the largest weekly wage at £524, followed by construction at £515 and services at £428. People tend to work more hours on average per week in construction and manufacturing than in the service sector.
Earnings measures money paid to employees in return for work done, before tax and other deductions from pay. The estimates relate to Great Britain and include salaries but not unearned income, benefits in kind or arrears of pay. As well as pay settlements, the estimates reflect bonuses (where included), changes in the number of paid hours worked and the impact of employees paid at different rates joining and leaving individual businesses. The estimates also reflect changes in the overall structure of the workforce; for example, fewer low paid jobs in the economy would have an upward effect on the earnings growth rate.