Wage growth slows slightly over summer


Annual growth in workers’ average earnings was 6% for the public sector and 4.4% for the private sector.

Private sector earnings growth was the lowest in four years but was still ahead of inflation.

The ONS said the public sector annual growth rate is affected by some public sector pay rises being paid earlier in 2025 than in 2024.

Chris Hare, the senior UK economist at HSBC, said the data indicates “a fairly steady labour market”.

“I think we’re probably seeing fairly soft demand for labour in the economy,” he said, adding that it should lead to “a gradual easing in broader cost pressures in the labour market and an easing in wage growth”.

The number of people who were made redundant between June and August increased from the same period last year, to 3.8 per 1,000 employees in June to August 2025.

The ONS also revised the previous figure for wage growth, bringing it up from 4.7% to 4.8%.

This figure will likely be used to calculate the increase to the state pension for next year.

Under the triple lock policy, the state pension is increased by the highest of wage growth, inflation or 2.5%.


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