We communicate a range of indicators of economic activity in the UK labour market that can be used as a guide for employers when conducting periodic pay reviews for workers.
The indicators include average weekly earnings, wages including the National Minimum Wage and the National Living Wage, cost of living (Consumer Price Index and Retail Price Index) and farm business profitability.
You can also download a PDF copy of the latest key labour market indicators.
Headline figures – July 2026
Key Labour Market Indicators are designed to provide headline figures on the wider economic and labour market conditions in the UK. This can be used as a quick reference guide when conducting periodic pay reviews for workers.
Earnings in the economy
+3.4% AWE (Average Weekly Earnings)
This is the key National Statistics indicator of short-term earnings growth and with monthly estimates of the level of AWE per worker/employee. It provides details of AWE for the UK economy as whole as well as the level of pay within other sectors. The year-on-year change in average pay is a useful indicator of wage changes in the wider economy.
Figures from the ONS (Office for National Statistics) show wage growth was 3.4% in the three months to April.
Private sector pay grew at an annual pace of 2.9%, while in the public sector it was 5.1%. Inflation is eroding private sector pay, with earnings falling behind the current level of price increases as measured by the CPI.
After the public sector, the wholesaling, retailing, hotels and restaurants sector showed the strongest regular annual growth rate at 3.5%.
Wage rates
£12.71 Current NLW rate
The government has announced increases to wage rates. The new rates came into effect on 1 April 2026.
The NLW (National Living Wage) paid to workers aged 21 and over has risen 4.1%, from £12.21/hour to £12.71/hour.
For 18- to 20-year-olds, the minimum wage increased from £10 to £10.85.
The accommodation offset rate has increased to £11.10 per day, an increase of 4.1%.
Apprentices and those aged under 18 have been given a pay increase from £7.55/hour to £8.00/hour.
For more information, visit: National Living Wage and Minimum Wage increases – what you need to know.
| Rates from April 2026 | |
| NLW 23+ | £12.71 |
| 21-22-year-old rate | £12.71 |
| 18-20-year-old rate | £10.85 |
| 16-17-year-old rate | £8.00 |
| Apprentice rate | £8.00 |
| Accommodation offset | £11.10 per day |
Source: Low pay commission
Cost of living
+2.8% CPI (Consumer Price Index)
CPI measures changes in the price level of the labour market based on consumer goods and services purchased by households. RPI measures inflation, but also includes the costs of housing (eg, mortgage interest costs and council tax), while CPI does not.
The UK inflation rate as measured by the CPI, held steady at 2.8% in the year to May, it is above the Bank of England's 2% target according to figures from the ONS. Inflation is still likely to rise over the months ahead, as an increase in household energy bills takes effect in July.
Farm business profitability
+20.5% TIFF (Total Income from Farming)
Defra has published results of TIFF for 2025. The TIFF is a measure of the performance of the whole agricultural industry in the UK. The profitability of UK farming for 2025 was £8.4 billion, an increase of £1.4 billion (+20.5%) from 2024.
The large increase in TIFF was primarily driven by higher commodity prices in the beef and dairy sectors, which led to a substantial rise in the value of outputs.
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