National Statistics provides monthly data and EEF updates our website to keep companies up to date with the latest earnings trends. EEF member companies can access our latest forecasts for earnings in manufacturing and the economy as a whole.
The data shown represents seasonally adjusted earnings growth including bonuses in manufacturing, the public and private sectors and the economy as a whole.
September 2008
Comment
Average earnings across the whole economy increased by 3.4% in the three months to August. This was slightly weaker than the 3.5% reported in the three months to July and the slowest pace of growth for five years. In manufacturing earnings growth remained stable at 2.8%, however stripping out bonus payments growth fell to an annual rate of 2.6%. Only public sector employees saw a pick up, albeit a modest one, in earnings growth over the past three months. The MPC should be reassured that there has been little pass-through of higher inflation into stronger earnings growth. And given the significant weakening in the labour market outlook a pick up in earnings is not expected in the short term.
Average earnings growth
|
|
Manufacturing |
Whole economy |
Public sector |
Private sector |
|
Annual % change |
|
2005 |
3.7 |
4.1 |
4.6 |
4.0 |
|
2006 |
5.2 |
4.1 |
3.7 |
4.3 |
| 2007 |
3.4 |
3.9 |
3.1 |
4.1 |
|
% change past three months on a year ago |
| Aug-07 |
3.7 |
3.8 |
2.9 |
4.0 |
| Sep-07 |
3.2 |
4.1 |
3.0 |
4.4 |
| Oct-07 |
2.6 |
4.1 |
3.2 |
4.3 |
| Nov-07 |
2.8 |
4.1 |
3.3 |
4.2 |
| Dec-07 |
3.4 |
3.9 |
3.3 |
4.0 |
| Jan-08 |
3.8 |
3.9 |
3.4 |
4.0 |
| Feb-08 |
3.7 |
3.7 |
3.7 |
3.7 |
| Mar-08 |
3.8 |
4.0 |
3.8 |
3.9 |
| Apr-08 |
3.5 |
4.0 |
3.9 |
3.9 |
| May-08 |
3.6 |
3.9 |
3.5 |
3.9 |
| Jun-08 |
2.9 |
3.5 |
3.2 |
3.6 |
| Jul-08 |
2.8 |
3.5 |
3.3 |
3.5 |
| Aug-08 |
2.8 |
3.4 |
3.5 |
3.4 |
Source: National Statistics