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Earnings And Employment From Pay As You Earn Real Time Information, Uk: January 2021

26th January 2021

Photograph of Earnings And Employment From Pay As You Earn Real Time Information, Uk: January 2021

This is a joint release between HMRC and the Office for National Statistics (ONS).

The number of payrolled employees in the UK in November 2020 fell by 2.8%, compared with the same period of the previous year.

Early estimates for December 2020 indicate that the number of payrolled employees fell by 2.7% compared with December 2019, which is a fall of 793,000 employees.

In December 2020, 828,000 fewer people were in payrolled employment when compared with February 2020.

In December 2020, 52,000 more people were in payrolled employment when compared with November 2020.

Median monthly pay increased by 4.7% in November 2020, compared with the same period of the previous year.

Early estimates for December 2020 indicate that median monthly pay increased by 4.9%, compared with the same period of the previous year.

Annual growth in payrolled employees in December 2020 was the highest in Cornwall and Isles of Scilly (a fall of 0.9%) and lowest in London as a whole (a fall of 5.5%).

Annual growth in median pay for employees in December 2020 was highest in Northern Ireland (an increase of 7.2%) and lowest in the North Eastern Scotland (an increase of 3.3%).

Annual pay growth in the UK for employees was highest at the 10th percentile (positive 6.7%) and lowest at the 75th percentile (positive 4.0%) in the three months to November 2020, for the percentiles we have analysed.

The increase in payrolled employees between February and December 2020 was largest in the health and social work sector (a rise of 82,000 employees) and smallest in the accommodation and food services sector (a fall of 343,000).

Annual growth in median pay for employees in December 2020 was highest in the arts and entertainment sector (an increase of 7.1%) and lowest in the accommodation and food services sector (a decrease of 4.2%).

Individuals receiving pay

In November 2020, 28.1 million people were payrolled employees (Figure 1). This represents a 2.8% fall in payrolled employees when compared with the same period of the previous year. When comparing the number of payrolled employees in November 2020 with the previous month, the number decreased by 0.2%. This is a small revision from the early estimate of a 0.1% decrease, reported in the previous bulletin.

Early estimates for December 2020 indicate that there were 28.2 million payrolled employees, a fall of 2.7% compared with the same period of the previous year and a decline of 793,000 people over the 12-month period. Compared with the previous month, the number of payrolled employees increased by 0.2% in December 2020 -- equivalent to 52,000 people.

Annual growth in the number of employees remained broadly within a range of 1.0% to 1.5% until 2019, following higher rates of growth prior to mid-2016 (Figure 2). Starting around early 2019, employee growth began a slight downward trend. However, employee growth slowed more substantially past March 2020, (becoming negative in April 2020) coinciding with the coronavirus (COVID-19) pandemic.

Pay distribution

In the three months to November 2020, the 10th percentile of the monthly pay distribution was £660, the 90th percentile was £4,562 and the 99th percentile was £13,069 (Figure 5). This means that 10% of payrolled employees earned equal to or less than £660 per month, 90% earned equal to or less than £4,562, and 99% earned equal to or less than £13,069.

Note

the above are just a few extracts from the report by the Office of National Statistics published today 26 January 2021. To read the full report with more graphs and links go HERE