Pay at the fifth percentile was 6.2% higher in April 2016 compared to the previous year and saw the fastest annual increase for the segment since 1997, which is when records began.
Editor’s Remarks: Data from the ONS giving a detailed annual snapshot of pay trends across the economy demonstrates that low income individuals, part-timers, women and young people gained the most over the past year in the UK, as they benefitted disproportionately from the national living wage, which was raised to £7.20 per hour. It is the biggest government intervention in the labour market since the 1990s. Economists had varying perceptions of the ramifications with some believing it will help address income inequality and boost productivity, while others believe it will cause more jobs to be lost. However, it must be noted that while there is a recovery in pay, average workers are still earning less than they were pre-crisis, in real terms.
What to watch: UK inflation, UK Income inequality, FTSE 100 companies