Total pay increases by 2.4%


Total pay, including bonuses, increased by 2.4% in Great Britain between April-June 2015 and April-June 2016, according to the Office for National Statistics (ONS).

Its UK labour market: August 2016 report also found that for June 2016, average regular pay, excluding bonuses, was £472 a week before tax and pay deductions. This is an increase from the June 2015 figure of £462 a week.

Average total pay, including bonuses, increased from £490 a week in June 2015 to £501 a week in June 2016.

Since 2000, average total pay in nominal terms has increased by 61%, rising from £311 a week in January 2000 to £501 a week in June 2016.

Regular pay, excluding bonuses, increased by 2.3% between April-June 2015 and April-June 2016.

In real terms, adjusted for consumer price inflation, regular pay increased by 1.9% between April-June 2015 and April-June 2016, and total pay increased by 2.1%.

Ian Brinkley, acting chief economist at the Chartered Institute for Personnel and Development (CIPD), said: “This is another set of positive figures, with employment growing, unemployment falling and stable wage growth. It is still too early to see a Brexit effect, as the statistics cover the three months to the end of June.

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“They do suggest, however, that in the short term the labour market remains resilient. Employers should, therefore, continue to take a strategic approach to investment in people and new technologies, and invest to address long-term challenges like improving productivity, rather than be blown off course by short-term pressures.”

Ben Brettell, senior economist at Hargreaves Lansdown, added: “[The] unemployment and wage growth numbers from the ONS cover the three months to the end of June, and as such reflect pre-referendum conditions. Nevertheless, signs here are also encouraging, with unemployment remaining at an 11-year low of 4.9% and wage growth ticking up slightly to 2.4% year-on-year.”