Annual growth in employees’ average earnings in Great Britain for regular earnings, excluding bonuses, in July to September was 4.6%, according to data from the Office for National Statistics (ONS).
This figure decreased from 4.7% in the previous three months.
Total earnings including bonuses stood at 4.8% in the same period, down from 5% previously.
Annual average regular earnings growth was 4.2% for the private sector, down from 4.4% previously, and 6.6% for the public sector, up from 6%. The public sector growth rate ws affected by some pay rises paid earlier in 2025 than in 2024.
Annual growth in real terms, adjusted for inflation using the Consumer Prices Index (CPI) including owner occupiers’ housing costs, was 0.5% for regular pay, down from 0.6%, and 0.7%, down from 0.9%, for total pay.
Annual growth in real terms, adjusted for inflation using CPI excluding owner occupiers’ housing costs, was 0.8% for regular pay, down from 0.9%, and 1%, down from 1.3%, for total pay.
Liz McKeown, director of economic statistics at ONS, said: “The number of people on payroll is falling, with revised tax data now showing falls in most of the last 12 months. Meanwhile, the unemployment rate is up in the latest quarter to a post pandemic high. Wage growth in the private sector slowed further, but we continue to see stronger public sector pay growth, reflecting some pay rises being awarded earlier than they were last year.”
Michael Stull, managing director at ManpowerGroup UK, added: “The latest ONS data confirms what employers have been experiencing for months: cautious hiring, and a labour market under pressure. There remains wage pressure in the labour market, with regular earnings excluding bonuses at 4.6% in July to September. While we may be reaching the peak of inflation across the market, we’re seeing productivity decrease; it’s going to take wages a while to regulate with the current state of the labour market.”
Jack Kennedy, senior economist at Indeed, said: “The latest figures point to a cooling labour market, with payrolled employment falling again, unemployment ticking up and wage growth continuing to ease. Employer confidence remains fragile ahead of a Budget that’s likely to bring significant tax increases.”
