London Daily

Focus on the big picture.
Friday, Dec 12, 2025

Private workers' pay growth outpaces public sector

Private workers' pay growth outpaces public sector

The gap between wage growth in the public and private sector is near a record high, official figures show.

Workers in the private sector saw their average pay rise by 6.9% between August and October, according to the Office for National Statistics (ONS).

That compares to wage growth of just 2.7% for public sector employees.

Thousands of workers are set to go on strike this week, including nurses who expect to stage their first-ever nationwide walkout on Thursday.

The 4.2% difference between pay growth in the public and private sectors is just below the 4.4% gap seen between July and September. The figures do not include distortions caused by the pandemic.



The Office for National Statistics (ONS) said that overall, regular pay grew by 6.1% in the three months to October. But taking rising prices into account, wages fell by 2.7%.

Workers across the public and private sectors have seen their wages fail to keep up with inflation, which measures how prices change over time. It currently stands at 11.1%, a 40-year high.

Strike action due to take place over pay and working conditions includes:

*  Thousands of workers across the rail industry started a fresh round of strikes on Tuesday, going into Wednesday. More walkouts are scheduled later this week.

*  Staff at Royal Mail who are members of the CWU will take strike action on Wednesday and Thursday. This will be followed by further walkouts on 23 December and Christmas Eve.

*  Nurses and ambulance workers are also planning industrial action later this month.

The ONS said that 417,000 working days were lost to strikes in October - the highest since November 2011.

Sam Beckett, head of economic statistics at the Office for National Statistics, said that the sectors that have been hardest hit by strike action are transport and storage as well as information and communications.

"That's been largely driven by the rail and mail strikes," she told the BBC's Today programme.

Ms Beckett said it was difficult at this stage to assess how industrial action has affected the wider economy.

"We haven't really seen the influence of that in our GDP statistics yet. It is too early to say how it will hit the economy more broadly," she said.

Overall, the unemployment rate rose to 3.7%. The number of job vacancies also fell, down 65,000 in September to November, which was the fifth consecutive fall for this measure.

Ms Beckett said the decline was a sign the jobs market "could be starting to soften a little" and an indication that some businesses were "were starting to pull some of their vacancies because they are reducing activity".

However, despite the fall, the ONS said job vacancies still remained close to historically high levels, with nearly 1.2 million roles available.

There was also a decline in the number of people classed as economically inactive, which is those who are not in employment and have not sought work in the past few weeks. The most notable drop was among those aged between 50 and 64.

Jack Kennedy, UK economist at recruitment firm Indeed, said there was "evidence of some people returning to the labour force from retirement".

"That may be an early sign of cost-of-living pressures prompting some people to rethink their plans," he said.

But overall, inactivity remains more than 560,000 higher than pre-pandemic levels and continues to fuel recruitment challenges across a range of sectors, said Mr Kennedy.

Kai Clarke, who works at Purple Jay Nurseries' branch in Lambeth, said she was grateful for the 16% pay rise the firm had managed to provide for its workers - although it has quickly been absorbed.

Nursery worker Kai Clarke says she is grateful her pay has risen but so have her everyday bills


"I would say that I'm happy and I'm grateful but the excitement has worn off because I've noticed it is all going into the bills. Even simple things like juice, milk and butter have gone up."

While the manager of the nursery, Jarrod Ayling, told the BBC that putting wages up would have a big impact on his costs too, he said it was "needed because of the supply and demand situation" and the struggle to find recruits.

Newsletter

Related Articles

0:00
0:00
Close
Former UK Prime Minister Boris Johnson proclaims, “For Ukraine, surrendering their land would be a nightmare.”
Microsoft Challenges £2.1 Billion UK Cloud Licensing Lawsuit at Competition Tribunal
Fake Doctor in Uttar Pradesh Accused of Killing Woman After Performing YouTube-Based Surgery
Hackers Are Hiding Malware in Open-Source Tools and IDE Extensions
Traveling to USA? Homeland Security moving toward requiring foreign travelers to share social media history
UK Officials Push Back at Trump Saying European Leaders ‘Talk Too Much’ About Ukraine
UK Warns of Escalating Cyber Assault Linked to Putin’s State-Backed Operations
UK Consumer Spending Falters in November as Households Hold Back Ahead of Budget
UK Orders Fresh Review of Prince Harry’s Security Status After Formal Request
U.S. Authorises Nvidia to Sell H200 AI Chips to China Under Security Controls
Trump in Direct Assault: European Leaders Are Weak, Immigration a Disaster. Russia Is Strong and Big — and Will Win
"App recommendation" or disguised advertisement? ChatGPT Premium users are furious
"The Great Filtering": Australia Blocks Hundreds of Thousands of Minors From Social Networks
Mark Zuckerberg Pulls Back From Metaverse After $70 Billion Loss as Meta Shifts Priorities to AI
Nvidia CEO Says U.S. Data-Center Builds Take Years while China ‘Builds a Hospital in a Weekend’
Indian Airports in Turmoil as IndiGo Cancels Over a Thousand Flights, Stranding Thousands
Hollywood Industry on Edge as Netflix Secures Near-$60 Bln Loan for Warner Bros Takeover
Drugs and Assassinations: The Connection Between the Italian Mafia and Football Ultras
Hollywood megadeal: Netflix acquires Warner Bros. Discovery for 83 billion dollars
The Disregard for a Europe ‘in Danger of Erasure,’ the Shift Toward Russia: Trump’s Strategic Policy Document
Two and a Half Weeks After the Major Outage: A Cloudflare Malfunction Brings Down Multiple Sites
UK data-regulator demands urgent clarity on racial bias in police facial-recognition systems
Labour Uses Biscuits to Explain UK Debt — MPs Lean Into Social Media to Reach New Audiences
German President Lays Wreath at Coventry as UK-Germany Reaffirm Unity Against Russia’s Threat
UK Inquiry Finds Putin ‘Morally Responsible’ for 2018 Novichok Death — London Imposes Broad Sanctions on GRU
India backs down on plan to mandate government “Sanchar Saathi” app on all smartphones
King Charles Welcomes German President Steinmeier to UK in First State Visit by Berlin in 27 Years
UK Plans Major Cutback to Jury Trials as Crown Court Backlog Nears 80,000
UK Government to Significantly Limit Jury Trials in England and Wales
U.S. and U.K. Seal Drug-Pricing Deal: Britain Agrees to Pay More, U.S. Lifts Tariffs
UK Postpones Decision Yet Again on China’s Proposed Mega-Embassy in London
Head of UK Budget Watchdog Resigns After Premature Leak of Reeves’ Budget Report
Car-sharing giant Zipcar to exit UK market by end of 2025
Reports of Widespread Drone Deployment Raise Privacy and Security Questions in the UK
UK Signals Security Concerns Over China While Pursuing Stronger Trade Links
Google warns of AI “irrationality” just as Gemini 3 launch rattles markets
Top Consultancies Freeze Starting Salaries as AI Threatens ‘Pyramid’ Model
Macron Says Washington Pressuring EU to Delay Enforcement of Digital-Regulation Probes Against Meta, TikTok and X
UK’s DragonFire Laser Downs High-Speed Drones as £316m Deal Speeds Naval Deployment
UK Chancellor Rejects Claims She Misled Public on Fiscal Outlook Ahead of Budget
Starmer Defends Autumn Budget as Finance Chief Faces Accusations of Misleading Public Finances
EU Firms Struggle with 3,000-Hour Paperwork Load — While Automakers Fear De Facto 2030 Petrol Car Ban
White House launches ‘Hall of Shame’ site to publicly condemn media outlets for alleged bias
UK Budget’s New EV Mileage Tax Undercuts Case for Plug-In Hybrids
UK Government Launches National Inquiry into ‘Grooming Gangs’ After US Warning and Rising Public Outcry
Taylor Swift Extends U.K. Chart Reign as ‘The Fate of Ophelia’ Hits Six Weeks at No. 1
250 Still Missing in the Massive Fire, 94 Killed. One Day After the Disaster: Survivor Rescued on the 16th Floor
Trump: National Guard Soldier Who Was Shot in Washington Has Died; Second Soldier Fighting for His Life
UK Chancellor Reeves Defends Tax Rises as Essential to Reduce Child Poverty and Stabilise Public Finances
No Evidence Found for Claim That UK Schools Are Shifting to Teaching American English
×