The annual growth in employees’ average regular earnings, excluding bonuses, slowed to 4.9% in June to August 2024, according to the latest Labour market overview by the Office for National Statistics (ONS).
Annual growth was last lower than this at 4.7% in April to June 2022.
The figures show that annual growth in total earnings (including bonuses) was 3.8%. These rates are lower than the previous three-month period.
However, the report states that the total annual growth rate is affected by the NHS and civil service one-off payments made in June, July and August 2023.
Annual growth in real terms was 1.9% for regular pay and 0.9% for total pay.
Annual average regular earnings growth for the public sector was 5.2%, down on the previous three-month period when it stood at 5.7%.
For the private sector, this growth was 4.8%; growth was last lower than this in December 2021 to February 2022 (4.6%).
David Freeman, head of the ONS labour market and household division, said: “Pay growth slowed again, with last year’s one-off payments made to many public sector workers continuing to affect the figures for total pay. However, earnings continue to rise faster than inflation.
“Over the last three months the number of people on payrolls has stayed broadly flat. The Labour force survey shows a different picture and we would advise caution when interpreting changes in these data while we continue to improve survey responses.”
James Cockett, senior labour market economist for the Chartered Institute of Personnel and Development (CIPD), added: “[The] figures show a continued slowdown in pay growth, as employers tighten their purse strings. While many of the measures announced in the Employment Rights Bill are pro-worker, employers will be seeking a Budget that can boost business confidence and set out measures to support hiring and increase investment in workforce skills.”
