Regular pay excluding bonuses in the UK rose 5% year-on-year to GBP 679 per week in the three months to June 2025, unchanged from the previous period, matching market expectations, and remaining at its softest pace in nearly three years. Public sector wage growth accelerated (5.7% from 5.5%), marking the highest reading since the three months to February, while private sector growth edged down to 4.8% from 4.9%. By industry, the fastest annual increases were in wholesale, retail, hotels, and restaurants (6.8%), followed by services (5.0%), manufacturing (4.6%), construction (4.2%), and finance and business services (3.1%). Adjusted for inflation, real wages rose 0.9%, the weakest since the three months to July 2023.
UK Payroll Employment Down 8K in July
The number of payrolled employees in the United Kingdom fell by 8 thousand to 30.3 million in July 2025, following a revised 26 thousand decrease in the previous month. This marked the sixth consecutive monthly decline. Compared to the same month last year, payrolled employment dropped by 0.5% or 164 thousand, with the biggest fall recorded in the accommodation and food service activities sector (-108 thousand). Across regions, Westminster saw the largest decrease in payrolled employees (-3.1%), while Shetland Islands experienced the highest growth (2.2%). Meanwhile, the median monthly pay increased by 5.7% year-on-year to £2,536. Annual growth in median pay was the highest in the public administration and defence sector (8.6%), while the lowest was in the professional, scientific and technical sector (4.0%).
