London Daily

Focus on the big picture.
Tuesday, Jun 02, 2026

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
Japanese Technology Firm Fujitsu Launches Advanced Artificial Intelligence Tool for Corporate Disclosures
South Africa Officially Launches Nationwide Campaign for Highly Contested Local Government Elections
United Kingdom Commits Additional Funding for Unexploded Ordnance Clearance in Laos
Singapore Announces Stringent New Greenhouse Gas Regulations for Commercial Cooling Systems
Cambodia and Thailand Hold High-Level Border Security Talks at United Nations Headquarters
Myanmar Military Government and China Sign Major Agreement to Upgrade Media and Cultural Cooperation
Knife Attack at Swiss Train Station Leaves Three Injured in Suspected Act of Domestic Terrorism
Transnational Extortion Gang Threatens Canadian Police With Army of One Thousand Armed Operatives
Australia Imposes Forty-Two-Day Quarantine on Cruise Ship Passengers Following Deadly Hantavirus Outbreak
International Monetary Fund Unlocks Seven Hundred Million United States Dollars for Sri Lanka Following Economic Reforms
Australia Launches Record One Point Four Billion Dollar Lawsuit Against Chemical Giant 3M Over Contamination
China and Canada Foreign Ministers Meet in Ottawa in Effort to Stabilize Strained Diplomatic Ties
Indonesia Demands Urgent United Nations Security Council Reform Amid Escalating Global Conflicts
Extreme Weather Patterns Trigger Severe Drought in Madagascar and Destructive Flooding in East Africa
Indian State of Karnataka Faces Political Upheaval as Chief Minister Siddaramaiah Abruptly Resigns
Philippines and Japan Reaffirm Defense Ties as Crucial for Indo-Pacific Regional Stability
Norway Joins French Nuclear Deterrence Initiative in Major Shift for European Security Architecture
Global Critical Mineral Alliances Expand as Western Nations Move to Counter Chinese Supply Dominance
United States Imposes Fifty Percent Tariffs on Mexican Steel and Aluminum Ahead of Trade Pact Review
European Union and China Head Toward Major Trade Conflict Over Clean Technology Exports
United States Economic Growth Severely Downgraded to One Point Six Percent as Stagflation Fears Mount
World Health Organization Warns Central African Ebola Epidemic is Outpacing Containment Efforts
United States Treasury Department Conditions Sanctions Relief on Reopening of the Strait of Hormuz
Iranian Air Defenses Intercept and Destroy United States Military Drone Over Bushehr Province
Iranian Armed Forces Launch Ballistic Missiles Toward Unspecified Targets Prompting Regional Condemnation
United Nations Secretary-General Warns Global Order Facing Highest Level of Conflict Since 1945
Israel Issues Sweeping Evacuation Orders in Southern Lebanon Amid Intensified Hezbollah Conflict
Russia Announces Systemic Military Strikes Targeting Ukrainian Defense and Energy Infrastructure
United States and Iranian Negotiators Reach Draft Agreement to Extend Ceasefire and Resume Nuclear Talks
United Nations Security Council Deeply Divided Over United States Capture of Venezuelan President
US and Iran Exchange Direct Military Strikes Amid Fragile Gulf Ceasefire
World Health Organization Warns of Catastrophic Ebola Outbreak in DR Congo
Russia Threatens New Wave of Strikes on Ukrainian Infrastructure and Embassies
Scientists Warn Atlantic Ocean Currents Could Collapse Faster Than Projected
Anthropic Reaches $900 Billion Valuation in Historic AI Funding Round
Washington Imposes Crippling Sanctions on Iranian Maritime Authority
Japan and the Philippines Initiate Strategic Intelligence-Sharing Pact
Microsoft Deploys Autonomous Computer-Using AI Agents to Global Markets
Anthropic Secures $45 Billion Compute Infrastructure Agreement With SpaceX
U.S. Director of National Intelligence Resigns Amid Administration Shakeup
Micron Technology Crosses Trillion-Dollar Valuation Amid Unprecedented Hardware Demand
Canada and Germany Finalize Historic Long-Term LNG Export Agreement
China Expands International Travel Restrictions on Domestic AI Researchers
Japan Approves Sweeping Overhaul of National Intelligence Apparatus
Global Airlines Scramble Logistics as Middle East Airspace Remains Fractured
Japan's Naphtha Imports Plunge 47 Percent Amid Strait of Hormuz Closure
Global Crude Prices Retreat Below $96 as Gulf Tensions Momentarily Ease
Generative AI Outperforms Human Baselines in Landmark Global Creativity Study
NASA Partners With Private Aerospace to Unveil Permanent Lunar Base Architecture
South Korean Equity Markets Surge on Next-Generation Memory Chip Frenzy
×