Average weekly earnings in Great Britain: May 2025

By Salary Calculate Team · 6/17/2025

Financial analysis of the average weekly earnings in Great Britain as of May 2025, with detailed insights into sectors, regions, and trends.

Average Weekly Earnings Overview

As of May 2025, the average weekly earnings in Great Britain have seen a notable increase. According to the latest figures from the Office for National Statistics (ONS), earnings have risen as the job market stabilises and inflation begins to ease.

Key facts:

Average weekly earnings (excluding bonuses) grew by 3.2% year-on-year (YOY).
Median full-time weekly earnings are now £607, compared to £588 in May 2024.
When including bonuses, the growth rate stands at 3.5%.
Real earnings (adjusted for CPIH inflation) grew by 1.1% over the same period.
Earnings growth continues to outpace inflation for the fifth consecutive month, suggesting improved purchasing power for UK workers.

Source: ONS Labour Market Overview, May 2025

Sector-Wise Breakdown

Different sectors of the economy show varying levels of wage growth:

Information and Communication: +8.2% growth. Driven by high demand for digital skills, software development, cybersecurity, and AI integration.
Finance and Business Services: +5.0%. Stable performance amid ongoing digitisation and moderate hiring.
Health and Social Care: +4.3%. Increased public spending and staffing initiatives boosted pay.
Education: +3.8%. Recent public sector pay settlements contribute to modest gains.
Construction: +2.7%. Wage growth slowed slightly due to cooling housing demand.
Retail, Hospitality and Food Services: +2.2%. Real terms growth remained flat due to tight margins.
Manufacturing: +1.5%, the slowest among major industries. Affected by energy costs and reduced export volumes.

Source: ONS EARN01 Dataset, May 2025

Regional Divisions

The earnings gap between regions remains significant. London remains the highest-paying region, with wages far above the national average.

Regional earnings (average weekly, full-time):

London: £720 (+2.9%)
South East: £615 (+3.3%)
East of England: £590 (+2.8%)
Scotland: £585 (+3.1%)
North West: £565 (+2.6%)
Wales: £558 (+2.7%)
Yorkshire and the Humber: £545 (+2.9%)
North East: £533 (+2.5%)

Regional disparities continue to reflect differences in job composition, industrial base, and cost of living.

Source: ONS ASHE 2025 Provisional Data

Employment Context

The wage increases coincide with a mixed employment picture:

Unemployment rate: 4.4%, up slightly from 4.1% a year earlier.
Vacancies: Decreased for the sixth consecutive month, now at 862,000.
Job-to-job moves: Declined 6% quarter-on-quarter, indicating reduced churn.

The tighter labour market and slower hiring are putting upward pressure on wages, particularly in sectors with skill shortages.

Gender Pay Gap

The gender pay gap continues to show slow improvement:

Gender pay gap (full-time employees): 15.1%, down from 15.7% in 2024.
The gap is narrowest in the under-30 age group (5.4%) and widest among workers over 50 (19.8%).
Public sector gaps remain narrower (9.2%) compared to the private sector (17.4%).

Source: ONS Gender Pay Gap in the UK: 2025

Post-Pandemic Recovery

While 2020–2021 saw major wage disruptions due to furloughs and reduced hours, real earnings have largely recovered since late 2023. The biggest rebound has come in:

Technology and Digital Services: Remote work normalization and AI investment.
Healthcare: Ongoing recruitment drives and pay increases in the NHS.
Logistics and Distribution: Wage boosts to address persistent driver shortages.

Economic Outlook for 2025

Looking ahead:

Bank of England is expected to begin interest rate cuts in Q3 2025 if wage growth stabilises below 4%.
Wage growth is forecast to continue at around 3–4% through the rest of 2025.
Inflation is projected to remain around 2.1%, supporting real wage growth.

Sources:

FAQs

Q1: How has the pandemic affected average earnings? The pandemic temporarily reduced earnings during 2020–21 due to furloughs and redundancies. Recovery began in mid-2022 and accelerated in 2023–2024. By 2025, average earnings have surpassed pre-pandemic trends in real terms in most sectors.

Q2: What’s the status of the UK’s gender pay gap in 2025? The gap is 15.1% overall, showing a gradual downward trend. Significant gaps persist in senior leadership roles and male-dominated industries like finance and construction.

Q3: What is the outlook for the rest of 2025? Earnings growth is expected to continue moderately, especially in high-skill industries. Real earnings may see slight improvement if inflation remains steady.