Average earnings in Northern Ireland increased faster than in the rest of UK

Figures released today showed Northern Ireland average earnings in April 2009 increased faster over the year than in the rest of the UK.

However, the gap with UK earnings remains, with NI earnings 90% of the UK figure.

Provisional results from the Annual Survey of Hours and Earnings (ASHE) showed that growth over the year to April 2009 in median gross weekly earnings for all (i.e. both full- and part time) employees in Northern Ireland was 3.4% (to £356.7). This was higher than the comparable UK growth of 2.2% (to £397.3). This represented a marginal improvement over the year from 89% to 90% of UK earnings. Growth in earnings this year for all employees was lower for both NI and the UK compared to last year, when it was 4.6% in NI and 3.4% in the UK (to April 2008).

Both full-time and part-time employees in Northern Ireland showed a higher increase in earnings over the year compared to the UK. Gross weekly full-time earnings among Northern Ireland employees increased by 5.1% over the year, compared to 2.0% in the UK. The median gross weekly earnings figure for full-time employees in Northern Ireland, at April 2009, was £439.1. This represented a narrowing of the full-time pay gap from 87% at April 2008 to 90% of the UK figure (£488.7) at April 2009.

Growth over the year for part-time employees was 6.3% in NI compared to a figure of 4.0% in the UK. The median gross weekly part-time earnings in Northern Ireland at April 2009 was £159.5, over 4% higher than the figure in the UK (£152.9). However, while hourly rates of pay (excluding overtime) for part-time employees in Northern Ireland remained higher than in the UK, growth in these was slower (1.9% compared to 4.4% in the UK).

Northern Ireland full-time private sector earnings showed an increase of 1.6% compared to 1.0% in the UK. The size of the NI private sector increase was less marked than for all employees (3.4%). This has meant little change in the NI/UK private sector pay gap, with full-time private sector gross weekly earnings in Northern Ireland at April 2009 (£383.0) some 82.4% of the figure in the UK (£464.7), compared to 82.0% in the previous year.

Growth in median full-time weekly earnings for Northern Ireland’s public sector¹ (8.1%) was higher than the comparable UK figure (3.1%). Also, the mean gross full-time weekly earnings for the public administration sub-sector increased by 3.9% over the year. Median full-time gross weekly earnings in the public sector in Northern Ireland (£535.4) were almost 40% higher than the private sector. This was more marked than in the UK, where public sector earnings were 16% higher than the private sector.

Differences between the NI and UK public and private sectors can be influenced by the timing of pay settlements and the composition of the workforce. NI full-time public sector weekly earnings were 99.3% of the UK figure at April 2009.

There has been a widening of the gender pay gap for all employees in NI. Female median hourly earnings excluding overtime were some 87.3% of male earnings (compared to 90.4% a year earlier). The NI gender pay gap remained less marked than in the UK, where the equivalent female to male earnings ratio was 78.0% in April 2009, compared to 77.5% a year earlier.

Female full-time hourly earnings were 96.5% of male earnings in April 2009, compared to 97.4% a year earlier. This gap also remained less marked than in the UK, where the equivalent female to male earnings ratio was 87.8% at April 2009.

At April 2009 full-time employees in Northern Ireland had the second lowest median gross weekly earnings of the UK regions. Only employees in the North East (£435.9) had median weekly earnings lower than employees in Northern Ireland (£439.1).

Commenting on the figures, Enterprise Minister, Arlene Foster said: "Northern Ireland experienced a 3.4% increase in pay over the year to April 2009, which is to be welcomed. Although growth has been slower than last year, the increase remained above the UK average which is encouraging. That said, private sector earnings increased at a slower rate than the Northern Ireland average and there remains a substantial gap between Northern Ireland private sector earnings and those in the rest of the UK.

“Clearly the Northern Ireland economy continues to suffer from a number of structural imbalances, in particular a relatively small private sector. I believe that these weaknesses can only be addressed by remaining committed to the economic goals outlined in the Programme for Government (PfG). In addition, the findings of the Independent Review into Economic Policy, alongside the responses received from the public consultation, will also help me and my Executive colleagues to take the necessary steps to grow the dynamic and innovate economy that is at the heart of the PfG."

The Minister concluded: “Although trading conditions remain difficult, it is still vital to maintain investment in product and service development, so that companies position themselves for the upturn. This is the only way to create the high paying jobs our economy and society needs.”

Notes to editors:

1. ASHE includes breakdowns by public and private sector according to the legal status of the employers. Between 2008 and 2009 Lloyds Banking Group, the Royal Bank of Scotland Group, HBOS PLC and Northern Rock PLC were reclassified from the private sector to the public sector. Interpretation of public/private sector movements for NI and the UK are therefore more difficult between 2008 and 2009.
2. More detailed statistical information and definitions of the methodology used, can be found in the Northern Ireland Annual Survey of Hours and Earnings 2009 statistical bulletin, which is available on the following website: DETI website
3. For media enquiries, please contact DETI Press Office on 028 9052 9297. Out of office hours, please contact the Duty Press Officer via pager number 07699 715 440 and your call will be returned.
4. General information can be obtained from Mark McFetridge, DETI Statistics Research Branch, on Tel: 028 9052 9385.