Pay and prices
New factors affect earnings growth
Official figures for average weekly earnings in November for regular pay (excluding bonuses) in the whole economy rose by a healthy 4.2% from 3.5% the month before. However, this growth is increasingly being driven by a fall in the number and proportion of lower-paid employee jobs during the coronavirus pandemic; it is estimated that underlying wage growth – if the effect of this change in profile of jobs is removed – is likely to be under 2%.
LRD Payline data on agreed deals is for December. It shows an across the board median increase at 2.5% but this is still based on very thin data. The biggest growth has largely been in public sector pay and services.
https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours