London Daily

Focus on the big picture.
Saturday, Mar 14, 2026

Wages back above pre-economic crisis levels

Wages back above pre-economic crisis levels

Average weekly wages in the UK have reached their highest levels since before the financial crisis.
Weekly pay reached £512 in the three months to December, which - adjusting for inflation - is the highest since March 2008.

Excluding bonuses, earnings grew at an annual rate of 3.2% in the three-month period, official figures show.

Employment rose by 180,000 to another record high of 32.93 million, while unemployment stayed at 1.29 million.

The figures from the Office for National Statistics (ONS) showed the number of women in employment increased again - this time by 150,000 in the three months to December to a record high of 15.61 million.

Myrto Miltiadou, of the ONS, said: "In real terms, regular earnings have finally risen above the level seen in early 2008, but pay including bonuses is still below its pre-downturn peak.

"Employment has continued its upward trend, with the rate nudging up to another record high. In particular, the number of women working full-time grew strongly over the past year."

Employment Minister Mims Davies said: "As we embark on a new chapter as an independent nation outside the EU, we do so with a record-breaking jobs market and business confidence on the rise.

"With wages still outpacing inflation, UK workers can expect their money to go further as we look ahead to a decade of renewal."

It's always good to have some cheerful news to report, such as the news that wages, after stripping out the effect of inflation, have finally squeaked above their level in March 2008. In other words, your wage can finally buy a little bit more than it could before the banking crisis. So let's celebrate. Hooray.

Now let's home in on the amounts. The average wage excluding bonuses is now £511.61. In March 2008, the average wage would have bought you £510.96 (in 2019 prices). In other words you are 65p better off than you were - 12 years ago.

Well whoop-de-doo. There's always a half-full or a half-empty angle on wage increases. But to many workers, this minor economic landmark will serve less as a cause for celebration and more as a reminder that the past decade has been the worst for improvements in living standards in more than 200 years.

The 2008 crisis, caused by reckless mismanagement of the banks for which no-one has been punished, is one reason (not the only one) that the average pay packet has failed to do what we used to take for granted - i.e. increase by more than inflation.

It used to happen every year. Low-pay think tank the Resolution Foundation points out that if pre-crisis trends for increases in pay in real terms had continued, the average wage would now be £141 a week higher.

Thomas Pugh, at Capital Economics, said the employment figures proved the Bank of England's Monetary Policy Committee (MPC) was right to leave interest rates unchanged last month.

"The most recent surveys are suggesting that employment growth will continue to pick-up in Q1, which we think will contribute to the MPC keeping rates on hold at its next meeting on 26 March as well," he said.

However, the Institute of Directors warned: "The UK jobs market ended last year in fine form, but 2020 may be more challenging for employers.

"As more and more workers enter employment, it becomes harder for firms to recruit the employees they need, with a particular dearth in certain skill sets."

And Samuel Tombs, chief UK economist at Pantheon Macroeconomics. said: "The upside surprise to employment growth distracts from an otherwise slightly disappointing report.

"Despite the recovery in business confidence since the general election, the single-month measure of job vacancies was 49,000, or 6%, lower in January than a year earlier, showing no improvement from its recent trend."
Newsletter

Related Articles

0:00
0:00
Close
Middle East War Highlights Strategic Importance of Strong UK–Ireland Cooperation
Weak Growth Signals UK Economy Was Faltering Even Before Middle East Energy Shock
Marks & Spencer Tops UK Fashion Retail Rankings as Most Considered Brand
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Royal Navy to Acquire Twenty Uncrewed Surface Vessels for Autonomous Warfare Testing
Russia Summons British and French Envoys After Ukrainian Storm Shadow Strike on Strategic Facility
Starmer Confirms Britain Will Maintain Sanctions on Russia Despite U.S. Policy Shift
UK Moves to Refine AI Definition in Investment Security Reform
UK Economy Stalls in January as Growth Unexpectedly Falls to Zero
Asian Energy Security Tested as Strait of Hormuz Disruption Threatens Oil Supplies
Iran Sets Three Conditions for Ending Regional War as Diplomatic Efforts Intensify
Tesla Secures Approval to Supply Electricity Directly to Homes Across Britain
Prince William Delivers Tribute to Australia’s Naval Alliance Amid Renewed Royal Spotlight on the Country
UK Foreign Secretary Travels to Saudi Arabia to Reinforce Support for Regional Allies
Putin’s ‘Hidden Hand’ May Be Assisting Iran in Conflict With Trump, UK Defence Secretary Warns
UK Sets April Deadline for Tech Platforms to Strengthen Online Protections for Children
Elon Musk Moves Into Britain’s Energy Market as Tesla Wins Licence to Supply Power
UK Watchdog Warns Fuel Retailers Against Profiteering Amid Iran War Price Surge
Report Claims Iran Used UK Charity Network to Expand Influence
United States and United Kingdom Establish Joint Standards for Counter-Drone Technology
Iran May Be Laying Naval Mines in Strait of Hormuz, UK Warns Amid Escalating Gulf Tensions
US Deploys Bunker-Buster Bombs to UK Airbase as Iran Conflict Intensifies
British Troops in Iraq Intercept Iranian Drones Targeting Coalition Base
Release of Mandelson Files Raises Tensions as UK Seeks Stable Relations With Donald Trump
UK Documents Reveal Starmer Was Warned About Mandelson’s Epstein Links Before Ambassador Appointment
Nearly Five Hundred UK Mortgage Deals Withdrawn in Two Days as Market Volatility Forces Lenders to Reprice
Three Cargo Ships Hit Near Iran as Attacks Spread to Strategic Strait of Hormuz
Why British Police Repeatedly Declined to Investigate Jeffrey Epstein’s UK Links
UK Parliament Ends Hereditary Seats in House of Lords, Closing Chapter on Centuries of Aristocratic Lawmaking
EU and UK Urge Israel to Act Against Rising West Bank Settler Violence Amid Regional Tensions
US Senator John Kennedy Says Keir Starmer Should Not Be Trusted for Military Advice Amid Iran War Debate
UK High Court Rejects Attempt to Revive Terrorism Charge Against Kneecap Rapper
Revolut Secures Full UK Banking Licence After Multi-Year Regulatory Wait
Kentucky’s Bench Boost Powers Wildcats Past LSU in SEC Tournament Opener
British Couple Die After Being Pulled From Water at Australian Beach During Family Visit
Global Energy Agency Announces Record Release of 400 Million Barrels to Stabilize Oil Markets Amid Hormuz Disruption
British Airways Suspends UK Repatriation Flights as Middle East Travel Disruption Deepens
US Forces Prepare Ordnance at RAF Fairford as Strategic Bombers Deploy for Middle East Operations
Nigel Farage Faces Criticism After Saying Britain Should Stay Out of Iran War
Landmark UK Trial Begins Over Sony’s PlayStation Store Pricing
UK High Court Rejects Bid to Challenge Britain’s Chagos Islands Agreement With Mauritius
Finnish Duo Triumphs in England’s Annual Wife-Carrying Race, Winning a Barrel of Ale
How U.S. and UK National Security Strategies Are Reshaping the Global Business Landscape
Green Party Gains Momentum as Labour Shifts Toward the Political Centre
Royal Navy Destroyer HMS Dragon Sets Sail for Eastern Mediterranean as Regional Tensions Rise
UK Homebuilder Persimmon Warns Iran Conflict Could Dent Property Buyer Confidence
Roman Abramovich Signals Legal Fight if UK Seeks to Seize Chelsea Sale Funds
×