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Published: 14/10/2025
The Office for National Statistics (ONS) publishes monthly updates on average weekly earnings across the whole economy and by industry and sector in Great Britain. This commentary relates to ONS’s EARN02 and EARN03 datasets, which cover non-seasonally adjusted earnings, excluding bonuses and including arrears.
Note: ONS’s April 2025 update to earnings data included exceptional revisions dating back to October 2020, which have been reflected in our service and in the data below.
Construction earnings growth still trails the wider economy
Construction wages, as measured by index K5AH in the ONS’s Average Weekly Earnings dataset(1), increased by 4.1% in the year to August 2025. This was an increase on the 3.3% rise seen in the 12 months to July 2025. On the month, there was no movement in construction’s average weekly earnings.
Across the whole economy, the average increase in earnings in the year to August 2025 was 5.7%, up from 4.7% in July according to index KA5H.
Dr David Crosthwaite, chief economist at BCIS, said: ‘Annual wage growth in construction increased in August, but the general trend this year has been one of slowing earnings growth. The latest data point to a cooling jobs market – likely as a result of high employment costs coupled with subdued demand.
‘New vacancies data from the ONS supports this. Between July and September 2025, job vacancies in construction fell to their lowest level since the three-month period ending in April 2021. Together, these figures are a signal for the government to try and stimulate the wider economy by reducing the cost of doing business in the upcoming Budget.’
Annual growth in earnings was lower in construction than the whole economy average for the fourth consecutive month in August 2025.
Source: ONS – Construction (K5AH) and Whole economy (KA5H), non-seasonally adjusted average weekly earnings, excluding bonuses, including arrears
Comparing pay at a sector level (with index K56S), construction workers saw the second lowest annual increase in average earnings across all sectors.
The greatest annual wage growth was recorded in the public sector with a 12.0% rise.
Source: ONS – EARN02: Non-seasonally adjusted Average Weekly Earnings, excluding bonuses, including arrears, at sector level
The ONS data show that the construction sector has experienced the most extreme fluctuations in earnings movement in recent years, from a 9.5% annual decrease in May 2020 to a 13.4% increase year-on-year in May 2021.
Source: ONS – EARN02: Non-seasonally adjusted Average Weekly Earnings, excluding bonuses, including arrears, at sector level
BCIS produces five-year forecasts of the Average Weekly Earnings construction (K5AH) and whole economy (KA5H) time series for subscribers of BCIS OpX.
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(1) Office for National Statistics – Average weekly earnings in Great Britain: October 2025 - here
