Today's published earnings data show that Northern Ireland has experienced a significant increase in employees earning below two-thirds the median. At the same time, the data shows a significant increase in the proportion earning below the real living wage.
This decoupling of trends in the proportion of workers paid below two-thirds the median and the proportion earning below the real living wage emphasises the importance of considering changes in the costs of essential goods and services in policy efforts to make work pay.
The 2024 ASHE data for the United Kingdom and Northern Ireland indicates a mixed situation of progress and ongoing challenges. While the National Living Wage increases have significantly reduced the proportion of low-paid jobs, many workers still earn below the real living wage, especially in sectors like Accommodation and Food Services. This highlights a disconnect between wage growth and the rising costs of living, particularly for essentials like housing and food. Vulnerable groups, such as part-time workers, young people, and women, continue to face high rates of low pay, indicating a need for targeted interventions. The data also reveal a decoupling between the proportion below the real living wage and the proportion below the median and emphasises the importance of considering changes in the costs of essential goods and services.
As Chancellor Rachel Reeves prepares to announce further minimum wage increases, today’s data underscore the requirement to do so.