Indexed gross hourly pay in London and England (2002-2022)
Change in real hourly gross pay by job pay percentile in London (2022)
In both London and the rest of England, growth in hourly earnings between 2014 and 2022 was fastest for the bottom 10% of jobs. Compared to 2008 (real terms) level of hourly earnings, Londoners in the 10th job pay percentile have seen an increase of 10%. The rise was likely driven by the increase in the minimum and living wages. The National Living Wage increased from £7.50 an hour (paid to workers over 25) in 2017/18 to £9.50 an hour (paid to workers over 23) in 2022.
Between 2021 and 2022 there was a decline in hourly gross pay across all pay percentiles (in 2022 real terms). However, the decline in hourly gross pay is greater for higher paid jobs (above the median) where the COVID-19 pandemic seems to have had a greater economic impact as they aren’t protected by the increase in minimum and living wages as the bottom jobs at the bottom percentiles are.
When looking at the change in hourly earnings within the last 5 and 10 years (in 2022 real terms) hourly earnings have increased for the lowest 30% of jobs. However, there is an increasingly steep decline for the top percentiles when looking at hourly gross pay growth over the last 10 years, with a decline of 7% for the top earners over the past decade.
The data on hourly earnings refer to earnings within a week in April. The hourly earnings refer to usual hours worked (based on annual earnings) and should not be impacted by any changes in actual hours worked, as is the case with weekly earnings.