Indexed gross weekly pay in London and England (2002 - 2020)
Gross weekly earning of jobs at the 10th and 90th percentile by England regions (2020)
In 2014, jobs at the 10th percentile of gross weekly pay in London had weekly pay of almost 18% lower (in real terms) than in 2008. This compares to a just above 8.5% fall for those at the 10th percentile in England overall.
Pay for these jobs in London has also failed to recover, still being 8.3% lower in real terms than their 2008 level in 2019. Whereas in 2020, we see weekly pay decline further with almost 11% below that of the level in 2008. This could be an initial indication of how the pandemic has impacted weekly earnings. Within London, only the top 90th percentile have not experienced a decline in weekly earnings between 2019 and 2020, when comparing them to real 2008 level earnings.
The volatility of weekly earnings across the years should be acknowledged. When looking at the change in weekly earnings within the last year (in 2020 real terms) earnings have increased. However comparing this to 10 years ago, there is an overall decline in earnings across all percentiles and increasingly so for the higher percentiles.
A possible explanation for a decline in weekly earnings for certain groups is the disproportionate impact the furlough scheme has on weekly earnings. The data on weekly earnings refer to earnings within a week in April and therefore, since actual hours worked were fewer for those on the furlough scheme, weekly earnings were cut down too.