Median monthly pay in February 2023 was £2,193, a 6.7% increase compared with the same period in 2022, according to the Office for National Statistics (ONS).
The findings revealed that the median pay growth rate fell between March and May 2020, but 6.7% was higher than the average growth rate before March 2020.
Average total pay, including bonuses, grew by 5.7% and regular pay, excluding bonuses, grew by 6.5% in the period from November 2022 to January 2023. Total and regular pay growth during the same period fell in real terms year-on-year, by 3.2% and 2.4% respectively. A larger fall was last seen in February to April 2009, when it dropped by 4.5% on the year.
Total pay growth remained smaller than regular pay growth in November 2022 to January 2023, due to a higher than normal amount paid out in bonuses in December 2021. December 2022 bonus levels remained similar to that of previous months, with the finance and business services sector the main contributor to this.
Darren Morgan, director of economic statistics at the ONS, said: “Recent trends have continued, with a slight rise in employment, especially among part-timers. However, a record number of people were completely outside the labour market due to long-term sickness. Although the inflation rate has come down a little, it’s still outstripping earnings growth, meaning real pay continues to fall. However, the gap between earnings growth in the public and private sectors has narrowed sharply.”
Joanne Frew, global head of employment and pensions at DWF, added: “In addition to industrial action, attraction and retention of staff remains a cause for concern for employers as the cost-of-living crisis continues to bite. Employees are demanding more pay and it is often the case that the employer simply cannot meet the demand. Employee engagement has never been more important. Employers are looking at new and innovative ways to attract and retain talent, from increased flexibility such as work from anywhere policies to offering employee discount schemes.”
Jonathan Boys, senior labour market economist for the Chartered Institute of Personnel and Development (CIPD), said: “Pay is still rising but prices are rising faster and each month the cost-of-living crisis casts more gloom on family finances. Though inflation is coming down, prices still rose by 10.1%, eclipsing today’s figures which show regular pay growing at 6.5%. A pattern that we are getting used to now is the gap between public and private sector pay. The former grew at just 4.8% while the latter grew by 7%. This will make recruitment and retention in the public sector harder as time goes on.”
