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 – September 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
+3.5% AWE (Average Weekly Earnings)
AWE is the key official indicator of short-term earnings growth. It provides monthly estimates for the whole economy and individual sectors, and the annual change is a useful guide to wider wage pressures.
ONS (Office for National Statistics) figures show annual growth in regular earnings was 3.5% in the three months to July 2026. Total earnings, including bonuses, grew by 3.9%.
Regular pay grew by 2.9% in the private sector and 6.3% in the public sector. After adjusting for CPI (Consumer Price Index) inflation, regular pay increased by 0.8% in real terms.
Vacancies fell to 702,000 in June to August 2026, the lowest level since February to April 2021, indicating continued caution among employers.
Wage rates
£12.71 Current NLW (National Living Wage) rate
The statutory wage rates below took effect on 1 April 2026. Read more on: GOV.UK | Low Pay Commission
The National Living Wage for workers aged 21 and over is £12.71/hour, an increase of 4.1% from £12.21.
The 18- to 20-year-old rate is £10.85/hour, while the rate for 16- to 17-year-olds and apprentices is £8.00/hour.
The accommodation offset is £11.10 per day.
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
+3.1% CPI (Consumer Price Index)
CPI measures changes in the prices of goods and services purchased by households. CPIH is the broader measure that also includes owner occupiers’ housing costs.
CPI inflation rose to 3.1% in the 12 months to August 2026, from 2.9% the previous month, according to figures from the ONS. CPIH inflation rose to 3.3%. Transport, particularly motor fuels, made the largest upward contribution to the change in the annual rates.
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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