Total pay, including bonuses, increased by 2.3% in Great Britain between June-August 2015 and June-August 2016, according to the Office for National Statistics (ONS).
Its UK labour market: October 2016 report also found that for August 2016, average regular pay, excluding bonuses, was £474 a week before tax and pay deductions. This is an increase on the August 2015 figure of £463 a week.
Average total pay, including bonuses, was £504 a week before tax and other pay deductions in August 2016, compared to £494 a week in August 2015.
Between June-August 2015 and June-August 2016, regular pay in nominal terms increased by 2.3%.
Regular pay in real terms, which has been adjusted for consumer price inflation, increased by 1.7% between June-August 2015 and June-August 2016, and total pay increased by 1.8%.
Ben Brettell, senior economist at Hargreaves Lansdown, said: “Wage growth fell slightly to 2.3%, showing the expected increase in inflation hasn’t yet fed through to higher pay. Since the vote to leave the EU, economists and commentators have been forecasting a sharp rise in unemployment as the uncertainty affects firms’ hiring decisions. The Bank of England expects a rise to 5.5% once the full effect filters through. Yet for now, the UK labour market sails serenely on.”
Mariano Mamertino, economist at Indeed, added: “While average wage rises are still modest, rising prices are starting to erode workers’ purchasing power. For the two to be moving in opposite directions is an uncomfortable reminder of the painful years Britain suffered after the financial crisis.”