This Earnings Outlook looks at the first quarter of labour market data for 2017. This was a period when the pay squeeze returned with average weekly earnings falling by 0.4 per cent.
This return is particularly unwelcome as average earnings are still 3.4 per cent below their pre-crisis peak. For Londoners and younger workers in particular – whose pay is still 10 per cent below their peak – getting back to pre-crisis pay levels is still many years away.
In a relatively poor pay landscape the one bright spot is the National Living Wage (NLW) which has substantially boosted pay for low-earners. However, by compressing the pay distribution the NLW also heightens the need to help people progress in work. This briefing note looks at how the NLW has affected pay rises for those that remain in the same job, and those who move jobs.