June’s Salary Surge: The Biggest Wage Boost Since the 2020 Budget
Happy news for the workforce! Full‑time wages in the UK jumped the largest monthly step since Chancellor Rachel Reeves announced her Autumn Budget in October. According to Employment Hero’s latest data, employers in small and medium‑sized firms (1‑500 employees) pulled a 1% lift in June compared with May and a 1.6% rise when looking back three months.
Why the Numbers Matter
- Historical context: The wage slump that hit in October and bottomed out in January at a –1.1% monthly drop has been slowly rebounding.
- Cost pressures: Even with higher National Insurance rates and general inflation, the data show that businesses are rewarding their experienced hires.
- Who’s getting the raise? Boomers (age 56‑75) saw a hefty 4.6% bump, while Gen X (age 41‑55) gained 1.9%. Millennials earned a modest 0.6% increase, and Gen Z actually saw a tiny 0.2% dip.
Small‑Biz Insight
Kevin Fitzgerald, Employment Hero’s UK Managing Director, highlights the shift: “After a rocky patch post‑budget and April’s tax hikes, the SME sector is finally re‑accelerating. Salary gains are the folk‑song of relief for workers juggling rising living costs.”
He adds that “while seasoned workers are enjoying the windfall, firms must keep an eye on Gen Z to prevent a generation gap. They’re the fresh talent pipeline that drives future growth.”
The Bigger Picture
The Employment Hero Jobs Report is a monthly snapshot of the SME labour market, aggregating real‑time data from nearly 5,000 businesses and 105,000 employees. It offers a keen look at wage trends and hiring dynamics, illustrating how today’s businesses are navigating an ever‑changing economic landscape.
