We communicate a range of indicators of economic activity in the UK labour market that can be used as a guide for employers when conducting periodic pay reviews for workers.
The indicators include average weekly earnings, wages including the National Minimum Wage and the National Living Wage, cost of living (Consumer Price Index and Retail Price Index) and farm business profitability.
You can also download a PDF copy of the latest key labour market indicators.
Headline figures 鈥� March 2025
Key Labour Market Indicators are designed to provide headline figures on the wider economic and labour market conditions in the UK. This can be used as a quick reference guide when conducting periodic pay reviews for workers.听
Earnings in the economy
+5.9% AWE (Average Weekly Earnings)
This is the key National Statistics indicator of short-term earnings growth and with monthly estimates of the level of AWE per worker/employee. It provides details of AWE for the UK economy as whole as well as the level of pay within other sectors. The year-on-year change in average pay is a useful indicator of wage changes in the wider economy.
Figures from the show wage growth was 5.9% in the three months to January.
Earnings are still outpacing inflation. Private sector pay grew at an annual pace of 6.1%, while in the public sector it was 5.3%.
The wholesaling, retailing, hotels and restaurants sector saw the largest annual regular growth rate at 6.3%, followed by the construction sector at 6.2%.
Wage rates
拢12.21 Current NLW rate
The . The new rates came into effect on 1 April 2025.
The NLW (National Living Wage) paid to workers aged 21 and over rose 6.7%, from 拢11.44/hour to 拢12.21/hour.
For 18 to 20-year-olds, the minimum wage increased from 拢8.60 to 拢10.
The accommodation offset rate increased to 拢10.66 per day, a 67p increase from the previous rate, an increase of 6.7%.
Apprentices and those aged under 18 got a pay increase from 拢6.40/hour to 拢7.55/hour.听
For more information, visit: National Living Wage and Minimum Wage increases 鈥� what you need to know.
| Rates from April 2025 | 听 |
| NLW 23+ | 拢12.21 |
| 21-22-year-old rate | 拢12.21 |
| 18-20-year-old rate | 拢10.00 |
| 16-17-year-old rate | 拢7.55 |
| Apprentice rate | 拢7.55 |
| Accommodation offset | 拢10.66 per day |
Source: Low pay commission
Cost of living
+2.8% CPI (Consumer Price Index)
CPI measures changes in the price level of the labour market based on consumer goods and services purchased by households. RPI measures inflation, but also includes the costs of housing (e.g. mortgage interest costs and council tax), while CPI does not.
The UK inflation rate as measured by the CPI, fell to 2.8% in February, which was below the 2.9% forecast by economists and the 10-month high of 3% recorded in January, according to figures from the .
The Bank of England expects inflation to rise to 3.7% in the third quarter, primarily because of higher energy prices, before slipping back to about 2.5% during 2026, and reaching the official 2% target in 2027.
Farm business profitability
-9.8% TIFF (Total Income from Farming)
for 2023. The TIFF is a measure of the performance of the whole agricultural industry in the UK.
The profitability of UK farming UK for 2023 was 拢7.2 billion, a decrease of 拢0.8 billion (-9.8%) from 2022.
Following historically high commodity prices in 2022, driven by global events, there were reductions in the commodity prices of key crops and livestock outputs.
2024 figures will be published in May.
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