Full‑Time Pay Takes a Nosedive in Q1 – What It Means for Your Wallet
In the first quarter of the year, full‑time salaries in the UK slipped down a few points, right before the big NIC (National Insurance) tax hike and the simmering trade war. If you’re in the workforce, this move is more than just numbers; it’s a sign of shifting employer behaviour.
Where the Data Comes From
Employment Hero’s April Jobs Report pulls live data from over 105,000 employees at SMEs (1–500 staff) across the UK. These aren’t just anecdotes; they’re first‑hand insights that show what’s happening behind the office doors.
The Numbers That Matter
- Medial full‑time pay fell to £39,946 – a dip from the £40,197 median recorded in December 2024.
- That’s a 0.6% drop over three months – not huge, but enough to feel in your wallet.
- What it points to: new hires are being offered slightly lower salaries, while many existing staff see their wages stay flat instead of being trimmed.
Why This Happened
It’s all tied to last October’s budget – the government rolled out higher NIC rates for employers. Outside scholars say that these “jobs taxes” often trickle down, eroding actual pay rather than slashing take‑home amounts.
Quick Takeaway
- Employers are keeping salaries easy to stay compliant, which could mean extra cutbacks when the NIC war hits its tipping point.
- Employees should keep an eye on hiring trends and negotiate wisely – the market’s shifting, but savvy moves can still secure decent pay.
- Don’t let the numbers scare you; think of it as a new game, not a punishment.
In short: pay might feel a little lighter, but that’s the new normal. Stay informed, stay flexible, and keep your career momentum strong.
Manufacturing pay falls ahead of tariff spat
Wages Take a Hit in the UK Manufacturing World
Quarter‑1 2025: The Economy’s Chill in the Factory Lane
Full‑time pay in the trade‑exposed manufacturing, transport and logistics sector slid left, dropping every month in the first quarter of 2025. On average, wages fell by 2.6% each month—our first sustained dip in median earnings that we’ve seen since we started tracking the data.
Why Manufacturing Is Feeling the Pinch
- US has slapped a 10% tariff on UK imports, putting extra pressure on factories.
- National Insurance rates have crept up, which only adds to the cost of doing business.
- General economic uncertainty keeps bosses on edge, leading them to tighten wage budgets early before April.
Other Sectors Are Holding Their Own
- Retail, leisure & hospitality are seeing an average pay increase of 2.3%.
- Banking, finance & insurance are pushing upward at roughly 1.9%.
The Voice from the Front Lines
Kevin Fitzgerald, UK Managing Director of Employment Hero, summed it up: “The drop is scary for UK workers. Companies are trimming wages pre‑emptively because the cost of labor is getting higher.”
He went on, “Manufacturing’s wages falling is especially worrying—it’s a real sign of the multiple stresses on businesses: insurance hikes, market uncertainty, and the looming US tariffs. They’re making tough calls to stay competitive in a tougher trade climate.”
He added a sob story: “Workers are staring at stagnant wages while living costs stay high. Falling below the £40,000 mark isn’t just a number—it’s a psychological blow that could hurt consumer confidence in the months ahead.”
What’s Next?
With the industry’s wage slide, one thing is clear: the UK manufacturing sector needs a lifeline, or else the ripple effect could spread into everyday spending. Keep an eye on how employers balance cost‑cutting with keeping their teams motivated.
