The proportion of employees by real gross weekly earnings category. This means that weekly earnings have been adjusted for inflation (using CPIH)* so that it is possible to compare weekly earnings in 2016 with those 10 years ago in 2006. This graph includes both part-time and full-time employees. Part-time employees are generally concentrated towards the bottom of the weekly earnings distribution, due to both fewer hours of work and lower average hourly pay rates. In 2016 in London the median for all employees was £537 and for England –including London – the median was £442.
In 2016 in London, there was a smaller proportion of employees earning more than £600 than in 2006, and there has been an increase in the proportion of employees earning less than £600. This is also true in the rest of England but the change has been less marked.
57% – 1.8 million – employee jobs in London were earning less than £600 a week in 2016, an increase on 2006 when this figure was 52%. In the rest of England, 70%, 13 million employees, were earning less than £600, but there has only been a two percentage point increase since 2006. In 2011, the figure for London was 54% and for the rest of England it was 70%. This means that the proportion of employees paid less than £600 continued to increase between 2011 and 2016 in London but not in the rest of England.
The London distribution is shifting so that it resembles that of the rest of England more closely, with a larger proportion of employee jobs earning under £600 and a smaller proportion earning more than this.
* This is a version of the Consumer Price Index that includes a measure of housing costs.