19.03.202607:12:45UTC+00UK Wage Growth Below Estimates

In the UK, regular pay excluding bonuses rose by 3.8% year-on-year to GBP 690 per week in the three months to January 2026. This marked a slowdown from a slightly revised 4.1% increase in the previous three-month period and came in below market expectations of 4%. It was the weakest pace of growth since the three months to November 2020.

Wage growth eased across both the private and public sectors. In the private sector, pay growth edged down to 3.3% from 3.4%, the lowest rate since late 2020. In the public sector, pay growth decelerated more sharply, to 5.9% from 7.2%, its weakest reading since mid-2025.

By industry, the strongest annual pay gains were recorded in wholesale, retail, hotels, and restaurants (4.8%), followed by manufacturing (3.9%), services (3.9%), construction (2.0%), and finance and business services (2.0%).

After adjusting for inflation, real wages increased by 0.4% in the three months to January, down from a 0.5% rise in the previous period and the smallest gain since mid-2023.