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Islanders' wages have grown at the fastest rate for more than two decades – but massive rises in the cost of living have wiped out the benefit, new figures released today have shown.
Data published by Statistics Jersey showed that the average increase in wages over the past year was the highest recorded since June 2001, but that earnings still fell by 2.8% when inflation is taken into account.
The Index of Average Earnings measures the annual change in average earnings - taken as gross wages and salaries - that have been paid to workers in Jersey.
It includes overtime payments but excludes bonuses, employers’ insurance contributions, holiday pay and benefits in kind.
Although average earnings per full-time equivalent employee were 7.7% higher in June compared to the same month last year, this was wiped out by rising prices.
At 7.7%, the average wage increase over the year was the highest recorded for 22 years.
Pictured: Annual percentage change in the Index of Average Earnings 1991-2023. (Statistics Jersey)
The last rise to exceed this was in 2001, when wages went up 8.1%.
However, after adjusting for inflation – with the headline rate in June being 10.9% - average earnings fell in real terms by 2.8%.
Over the last 10 years, average earnings have decreased in real terms by 2.7%.
Pictured: Real-term annual percentage change in the Index of Average Earnings, 1991 to 2023.
The last 12 months represent the fifth time in six years that earnings have dropped in real terms.
Over the 12 months to June 2023: average earnings in the private sector increased by 7.8% before inflation but fell in real terms fell by 2.8%.
Average earnings in the public sector increased by 7.4% without inflation but decreased by 3.2% with it factored in.
The median average earnings of full-time equivalent employees was £800 per week and the mean was £920 per week.
Finance sector workers were found to be earning the most per week on average (£1,260), followed by those employed by Government (£1,120) and working across the utilities of electricity, gas and water (£1,050).
Those working in hotels, restaurants and bars were the lowest earners, taking home £590 per week on average.
Pictured: Average weekly earnings in June 2023, by sector.
In the private sector, the lowest increase in average earnings was recorded by ‘other business activities sector’.
This sector includes a wide range of mainly service-based businesses and includes care homes, cleaning companies, private education and leisure services.
This group saw an increase of 5.2% on an annual basis, before inflation.
Pictured: Index of Average Earnings in nominal (before inflation) and real terms (June 1990 = 100).
The agriculture sector saw the highest annual increase, up 19.8% on an annual basis. This rise was driven by an increase in hours worked this June, compared to June 2022, with the increase in the minimum wage (13.9%) also contributing to the large increase in this sector.
Around 14% of private-sector employees were earning less than the ‘Jersey Living Wage’ of £12.19 per hour. The sectors with the highest proportion of employees earning less than this were agriculture and fishing (43%), hotels, restaurants & bars (40%) and wholesale and retail trades (36%).
You can read the full report here.
Express's report on Average Earnings report in 2022
Express's report on Average Earnings report in 2021
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