UK unit wage costs index
UK unit wage costs index stood at 112.2 in Q1 2026, according to Office for National Statistics (ONS). It is one of the indicators in the Jobs by industry and sector table (Value · Quarterly), with a complete series running from Q1 1955 to Q1 2026. The complete series with an interactive chart, free to download.
This indicator in the Jobs by industry and sector table
| Indicator | Q1-2026 | Q4-2025 | Q3-2025 | Q2-2025 | Q1-2025 | Q4-2024 | Q3-2024 | Q2-2024 | Q1-2024 | Q4-2023 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Unit wage costs (2023=100) | 112.2 | 111.1 | 110.2 | 108.7 | 108.6 | 107.7 | 105.7 | 103.7 | 102.7 | 101.1 | |
| Unit labour costs, annual change | 5.2 | 4.5 | 5.8 | 5.7 | 5.6 | 6.6 | 4.8 | 3.7 | 5 | 4.4 | |
| Labour share of income | 59.7 | 59.4 | 59.1 | 58.4 | 58.9 | 58.7 | 57.9 | 57.8 | 58.2 | 58 |
Understanding UK unit wage costs index
The direct wage and salary expenditure required to produce a unit of real output across the whole economy of the United Kingdom is indexed relative to a fixed base year. This series isolates cash remuneration and regular bonuses from broader labour compensation packages, dividing total wage payments by real gross value added. Unlike total labour cost measures, this index excludes non-wage employer costs such as pension contributions and payroll taxes, providing a focused view of pure wage pressures on production efficiency.
Reading this index requires accounting for timing distortions caused by bonus payments, which can create artificial spikes in wage costs during specific quarters regardless of underlying productivity. Early estimates are frequently revised as employer tax records and corporate earnings surveys are reconciled. Year-on-year comparisons are generally more robust than quarter-on-quarter changes due to seasonal bonus clustering. Analysts comparing this metric with broader unit labour costs should expect divergences whenever non-wage employment expenses, such as statutory pension changes, alter faster than basic salaries.
Frequently asked questions
- Are employer pension contributions included in unit wage costs?
- No, non-wage benefits and pension payments are excluded, focusing strictly on direct wages and salaries.
- Why do quarterly figures sometimes show sharp spikes in this index?
- The concentration of annual bonus payouts in specific quarters can temporarily inflate wage costs per unit of output.
- How does this series differ from unit labour costs?
- It isolates cash wages, whereas unit labour costs include broader employer taxes and social security contributions.