The dynamics of average earnings is an indicator of the actual total payments made by UK employers for any work. The amount received from the payroll is divided by the number of employed people.

The indicator is the most complete indicator of the change in the welfare of working citizens, taking into account bonuses, piecework payment under a contract or part-time, seasonal earnings. Self-employed citizens, law enforcement agencies, employees of the Ministry of Defense and military personnel, students and trainees on state support are excluded from the calculation.

The full report of the statistical office includes segmentation of the average dynamics of earnings by individual sectors of the economy and the publication of the overall figure. Over the past 18 years of the XXI century, it has changed from 480 to 520 pounds (weekly earnings).

The indicator was introduced in the XXI century to analyze the short-term growth or decline in consumer incomes and was launched experimentally. The statistical test was completed in 2009, after which the data began to be published continuously by the Office for National Statistics of the United Kingdom since January 2010.

The indicator is constantly used By Bank The United Kingdom and the Royal Treasury, to determine inflation and calculate compensatory salary growth in budget organizations.

Frequency, time and format of publication Average Earning Growth

The average earnings indicator is released in the middle of each month, in the form of percentage changes to the previous period. The time of publication of the data by the Office for National Statistics of the United Kingdom is 9: 30 GMT (12:30 Moscow time).

The impact of the indicator on the Forex currency market

Changes in the Average Earning Growth readings affect the short - and medium-term exchange rate of the British pound, since the indicator is taken into account by the Bank of England when making a decision on the amount of the discount rate rates on loans. In the three-point system of economic calendar the indicator received the highest significance rating.

Regulators and traders consider the actual values of Average Earning Growth, together with labor productivity. If it does not grow, and average earnings increase, the pound may strengthen on inflation expectations, which may be a signal for a rate hike.

A decrease in the indicator with constant productivity indicates the stagnation of the economy, the reason for which is an increase in unemployment and an excess of labor due to the reduction of company staff.

The short-term strengthening or weakening of the pound at the time of the data release depends on the discrepancies between the data and the preliminary estimate. The data, which turned out to be better than expected, strengthens the GBP/USD exchange rate, and can indirectly positively affect the growth euro, as well as the national currencies of the Scandinavian countries and Switzerland. A negative divergence, worse than expected, may have the opposite effect, causing the GBP to weaken against the rest currencies.