Average earnings excluding bonuses in the United Kingdom slowed to 4.2% in December 2025, down from 4.4% in November 2025, according to data updated on 17 February 2026. The latest reading points to a gradual easing in underlying wage pressures as the labour market continues to rebalance.
The decline in pay growth ex-bonus from November to December suggests that upward pressure on employer wage costs may be moderating, a development closely watched by markets assessing the outlook for inflation and interest rates. While wage growth remains elevated by historical standards, the incremental slowdown reinforces the narrative of a cooling, though still relatively tight, labour market in late 2025.
