Full-time pay sees largest growth since the Chancellor’s Autumn Budget in October

Full-time pay in June saw its largest month-on-month increase since Chancellor Rachel Reeves delivered her Autumn Budget in October.

Employment Hero’s June Jobs Report uses real-time data from 105,000 employees across small and medium-sized businesses with 1-500 employees in the UK.

Data shows wages in June were 1% higher than May and up 1.6% versus three months ago.

This is a more positive picture than recent months, when wages plummeted in October to hit a low in January (-1.1% month-on-month), but have since been recovering slowly.

Despite a backdrop of increased costs, including the National Insurance hike, small and medium-sized businesses are paying more for experienced new hires, who tend to be Boomers and Gen X workers.

It is this older generation of workers who have seen the largest pay increases in June – up 4.6% month-on-month for Boomers and 1.9% for Gen X.

Whilst Millennials saw a small increase (0.6%), Gen Z was the only generation to see a month-on-month fall in salaries for new hires (-0.2%).

Kevin Fitzgerald, UK Managing Director of Employment Hero said, “After a rocky few months following the Autumn Budget and tax hikes in April, signs of growth are finally starting to show across the SME industry.

This uplift in pay will come as welcome relief to many workers feeling the pinch from cost-of-living pressures.

It’s positive to see momentum building and the trend is heading in the right direction. But the challenge now is keeping that growth moving. The focus for small and medium-sized businesses must shift toward sustaining these gains and building long-term confidence.”

“We’re also seeing SMEs investing in older generations like Boomers and Gen X leading the way on salary growth. While that’s encouraging for seasoned workers, it’s a reminder that we also need to ensure younger generations, particularly Gen Z, aren’t left behind. They’re the future of the workforce and now is the time to give them the support and opportunities even amid ongoing cost pressures.”

The Employment Hero Jobs Report offers a monthly snapshot of the labour market in SMEs, based on real-time data from nearly 5,000 businesses and 105,000 employees. From wage growth to employment trends, it provides valuable insights into the evolving UK employment landscape and how small and medium-sized businesses are responding to economic change.