UK Wage Growth Slows to Over 3-Year Low

Regular pay in the UK, excluding bonuses, rose 3.4% year-on-year to GBP 693 per week in the three months to March 2026, easing from a 3.6% growth in the previous period and matching market expectations. It was the weakest increase since the three months to October 2020, with private sector wages slowing to 3.0% from 3.2%, the lowest since the three months to October 2020. Also, public sector pay moderated to 4.8% from the prior 5.2%, the softest since late 2024. By industry, annual gains were seen in wholesale, retail, hotels, and restaurants (3.6%), manufacturing (3.2%), services (3.6%), and finance and business services (2.4%), but declined for construction (-0.6%). Adjusted for inflation, real wages edged up 0.1% in the three months to March, after a 0.2% gain in the previous period, the lowest since mid-2023.

Regular pay in the UK, excluding bonuses, rose 3.6% year-on-year to GBP 692 per week in the three months to February 2026, slowing from a 3.8% growth in the previous period but exceeding market expectations of 3.5%. It was the weakest increase since the three months to November 2020, with private sector wages slowing slightly to 3.2% from 3.3%, the lowest since the three months to October 2020. Also, public sector pay slowed to 5.2% from the prior 6.0%, the softest since early 2025. By industry, annual gains were seen in wholesale, retail, hotels, and restaurants (4.2%), manufacturing (3.5%), services (3.7%), construction (0.5%), and finance and business services (2.4%). Adjusted for inflation, real wages rose 0.2% in the three months to February, easing from a 0.2% gain in the previous period, the lowest since mid-2023.

Regular pay in the UK, excluding bonuses, rose 3.8% year-on-year to GBP 690 per week in the three months to January 2026, slowing from a marginally revised 4.1% gain in the previous period and falling short of market expectations of 4%. It was the weakest increase since the three months to November 2020, with private sector wages slowing slightly to 3.3% from 3.4%, the lowest since late 2020. Also, public sector pay slowed to 5.9% from the prior 7.2%, the weakest since mid-2025. By industry, annual gains were seen in wholesale, retail, hotels, and restaurants (4.8%), manufacturing (3.9%), services (3.9%), construction (2.0%), and finance and business services (2.0%). Adjusted for inflation, real wages rose 0.4% in the three months to January, following a 0.5% gain in the previous period, the lowest since mid-2023.