Full time earnings rise by £10 a week
Full time workers are £10 a week better than off than a year ago, with average weekly wages rising to £528, according to a new report from the Office for National Statistics.
In real terms, wages increased by 1.9% in 2015, boosted by negative inflation. This was the first year wages have increased in real terms since 2007.
For the 80% of people who have remained in the same job for over a year wages are rising even faster, by 4.3%.
Earnings for private sector workers increased by 1.6%, compared to 1.8% for those in the private sector. The report notes private sector earnings have consistently been around 85% of those in the public sector since 2009.
Gender pay gap narrows
The gender pay gap, or difference in earnings between full-time male and female workers narrowed marginally, but male workers still receive 9.2% more, on average.
When part-time workers are included, the gender pay gap remained at 19.2%, which is partly due to women being more likely to work part time.
Miners see top pay rise
People working in mining and quarrying saw the biggest pay increase in 2015, with average median salaries of £39,790, some 8% higher than in 2014. ‘Accommodation and food services’ workers saw annual pay rise by 7.4%, though median salaries were far lower: £12,091.
At the other end of the spectrum, median earnings for IT workers rose by just 0.6%, to £34,425.
An increase in the general level of prices that persists over a period of time. The inflation rate is a measure of the average change over a period, usually 12 months. If inflation is up 4%, this means the price of products and services is 4% higher than a year earlier, requiring we spend and extra 4% to buy the same things we bought 12 months ago and that any savings and investments must generate 4% (after any taxes) to keep pace with inflation. Since 2003, the Bank of England has used the consumer prices index (CPI) as its official measure of inflation (see also retail prices index).