Annual Survey of Hours & Earnings 2011 Published: March 2012 Annual Survey of Hours & Earnings (ASHE) - Earnings This release presents the results of the Annual Survey of Hours and Earnings (ASHE) for April 2011, with data on UK employees’ median levels of pay. The data was obtained from the National Statistics website and is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). Two data sets are available, the first relates to median gross weekly earnings of those persons for whom Blackburn with Darwen is a place of work and the second median gross weekly earnings for residents of Blackburn with Darwen. Information on wage levels can be used to evaluate the living standards of the residents and the ability of residents to afford housing. The Annual Survey of Hours and Earnings (ASHE) provides information about the levels, distribution and make-up of earnings and hours worked for employees in all industries and occupations in the United Kingdom. The Annual Survey of Hours and Earnings is based on a sample of employee jobs taken from HM Revenue & Customs PAYE records. When analysing the level of earnings of Pennine Lancashire residents it is important to note the difference between incomes derived by residents who may or may not be commuting out the borough to work (i.e. resident earnings) and earnings derived from work within the county boundary alone (i.e. workplace earnings). These two alternative data sets, of median weekly pay, from the Annual Survey of Hours and Earnings (ASHE), are shown side by side. The ASHE results do not cover the self-employed, nor do they cover employees not paid during the reference period. For the ASHE results the median (middle value) is used in this article as the headline statistic. The median is the value below which 50% of employees are allocated and is more reflective of the 'typical' wage or income. It is preferred over the mean (average) for earnings data as it is influenced less by extreme values and because of the skewed distribution of earnings data. Page 1 of 9 Summary The 2011 result reveals that the average full-time median weekly earnings for residents in the Blackburn with Darwen area is £412.80, 17.9% lower than the national average of £503.10 and 10.3% less than the regional average. Between 2010 and 2011 resident based earnings in Blackburn with Darwen decreased by 5.8% from £438.2 to £412.80. Across Pennine Lancashire resident earnings differ from workplace earnings, in five of the six districts residents earn more than people who commute into the area to work, with the exception of Blackburn with Darwen where workplace earnings are higher than resident earnings. The largest difference between resident and workplace earnings is in the Rossendale where residents earn on average £53.0 a week more than those people that work in businesses in the area. In Blackburn with Darwen resident based earnings are £33.40 less than people that work in the borough. Blackburn has the lowest resident based earnings and Pendle the lowest workplace based earnings of the six Pennine Lancashire districts The gap between resident male and female full-time wage rates remains substantial within Pennine Lancashire districts. The median weekly resident earning for males of £421.6 in Blackburn with Darwen is considerably higher than the female earnings of £339.5 (i.e. the median wage for male residents is 24% higher than that for females). This difference between male and female full-time resident earnings in Blackburn with Darwen is the second highest of any Pennine Lancashire district. Weekly resident based earnings for females who work part time is higher than for males working part–time, a trend echoed both regionally and nationally. The size of the gap is £17.10. Hourly earnings however show that part time wage level is £7.40 overall, but £7.69 for males compared to £7.21 for females. Similarly the median weekly workplace earnings (£458.9) for males who work in Blackburn with Darwen is 14.5% or £58 higher than that for females (£400.9). Over the last year resident full-time earnings for males decreased by 6.5% (from £450.8 to £421.6), a decrease of £29.20 and for females by £102.2 or 23.1% (from £441.7 to £339.5), Workplace earnings during the same period for males decreased by 1.7% or £8.10 and by 4.7% or £19.80 for females. In general not taking into account the gender of wage earners, full-time resident based earnings are lower than workplace earnings in Blackburn with Darwen. All districts show higher male than female resident earnings, the largest difference being in the Ribble Valley (£172.3.10) and Blackburn with Darwen (£82.1) and the lowest is in Burnley (£40.9). All districts with the exception of Burnley have higher male full-time workplace earnings than females. Over the last year gross annual resident based earnings for all full-time employees in Blackburn with Darwen decreased by 8.2% and by 0.2% regionally, nationally resident based earnings increased by 1.4%. Gross annual resident earnings in Blackburn with Darwen for females were 15% or £3,259 less than that for males, the third highest difference after the Ribble Valley and Rossendale. Page 2 of 9 Change in Full-time resident and Workplace Earnings Pennine Lancashire The table below shows change in resident based earnings for Blackburn with Darwen and Pennine Lancashire districts, Blackburn with Darwen is the only Pennine Lancashire district to experience a decrease in resident earnings. Gross weekly earnings have fallen from £438.2 in 2010 to £412.80 in 2011, a decrease of £31.10 or 5.8% over the year. All other Pennine Lancashire districts have seen an increase in resident earnings with the highest change in the Ribble Valley and Burnley. There has been a 1.1% increase in earnings for Lancashire as a whole Table 1: Blackburn with Darwen and Pennine Lancashire RESIDENT based earnings in 2010 versus 2011 Difference £ 2010 (A) 2011 (B) % change (A-B) 412.8 -25.4 Blackburn with Darwen 438.2 -5.8% 430.7 18.8 Burnley 411.9 4.6% 440.8 15.1 Hyndburn 425.7 3.5% 429.3 14.2 Pendle 415.1 3.4% 518.7 30.7 Ribble Valley 488.0 6.3% 438.5 7.4 Rossendale 431.1 1.7% Lancashire North West GB 467.0 471.0 501.7 472 460 503.1 5.0 -11.0 1.4 1.1% -2.3% 0.3% Source: Annual Survey Hours & Earnings, through Nomis, ONS During the same period workplace earnings (i.e. earnings for those for whom Blackburn with Darwen is a place of work) shows a 0.5% increase. Table 1.1: Blackburn with Darwen and Pennine Lancashire WORKPLACE based earnings in 2010 versus 2011 Difference £ 2010 (A) 2011 (B) % change (A-B) 446.2 2.3 Blackburn with Darwen 443.9 0.5% 421.3 9.9 Burnley 411.4 2.4% 426.8 6.8 Hyndburn 420.0 1.6% 384.2 -26.6 Pendle 410.8 -6.5% 504.1 54.5 Ribble Valley 449.6 12.1% 385.5 -14.3 Rossendale 399.8 -3.6% Lancashire North West GB 453.8 466.9 500.3 444.5 460.0 502.6 -9.3 -6.6 2.3 -2.0% -1.4% 0.5% Source: Annual Survey Hours & Earnings, through Nomis, ONS Workplace earnings for Pendle and Rossendale have decreased by 6.5% and 3.6% respectively. Page 3 of 9 2011 Full-time resident and workplace Earnings Pennine Lancashire One consequence of the overall lower level of competitiveness, and historically a high concentration of employment in traditional sectors, is that earnings of people working in Pennine Lancashire districts tend to be below or lower than those of the North West region as a whole and the UK average. The ASHE data shows the median resident based earnings for Blackburn with Darwen in 2011 was £412.8, while workplace based earnings was £446.2. The graph and table below shows workplace and resident based earnings for the six Pennine Lancashire districts. Figure 1: Workplace and resident full-time median weekly earnings for Pennine Lancashire districts Rossendale Workplace Resident Ribble Valley Pendle Hyndburn Burnley Blackburn with Darwen 0 100 200 300 400 500 600 Table 1.2: Resident and Workplace based earning for Pennine Lancashire districts, 2011 Resident earnings Workplace earnings Difference % (B) (B) £ (A-B) (Residence/Workplace) Blackburn £412.8 £446.2 with Darwen -£33.40 -7.5% Burnley £430.7 £421.3 £9.40 2.2% Hyndburn £440.8 £426.8 £14.0 3.3% Pendle £429.3 £384.2 £45.10 11.7% Ribble Valley £518.7 £504.1 £14.60 2.9% Rossendale £438.5 £385.5 £53.0 13.7% Lancashire North West GB £472.0 £460.0 £503.1 £444.5 £460.3 £502.6 £27.50 -£0.30 £0.50 6.2% -0.1% 0.1% Source: Annual Survey Hours & Earnings, through Nomis, ONS The 2011 result reveal: Median weekly earnings for full-time residents in Blackburn with Darwen (£412.8) were £90.3 or 17.9% lower than the national average of £503.1 and 10.3% (£47.2) lower than the North West average. All districts have resident based earnings that are lower than the national average. In Blackburn with Darwen residents earn £33.0 or 7.5% less than people who commute into the area to work. Blackburn with Darwen is the only district where resident based earnings are lower than workplace earnings The largest difference between residents and workplace earnings is in Pendle and Rossendale where resident based earnings are higher than workplace earnings by £45.10 and £53 respectively. Median workplace earnings for Blackburn with Darwen were 11.2% lower than the national average of £502.6 and 3.1% lower than the North West average. Page 4 of 9 2 Residence and Workplace by gender and full-time work Table 2: Full-time Resident and workplace earnings for males by district, 2011 Male full-time Resident Workplace Difference % earnings earnings (£) (Residence/Workplace) (A) (A) (A-B) Blackburn with Darwen £421.6 £458.9 -£37.30 -8.1% Burnley £436.0 £392.9 £43.10 11.0% Hyndburn £453.5 £430.5 £23.0 5.3% Pendle £448.0 £461.0 -£13.0 -2.8% Ribble Valley £617.2 £559.8 £57.40 10.3% Rossendale £457.0 £415.3 £41.70 10.0% Lancashire North West GB £504.7 £498.4 £541.7 £478.4 £498.5 £540.9 £26.30 -£0.10 £0.80 5.5% 0.0% 0.1% Source: Annual Survey Hours & Earnings, through Nomis, ONS Median earnings for full time males in Blackburn with Darwen show resident based earnings to be £37.3 or 8.1% lower than workplace based earnings. Of the six Pennine Lancashire districts, males resident based earnings is highest in the Ribble valley £617.2 and lowest in Blackburn with Darwen (£421.6) Male resident based earnings are £120 or 22% lower than national earnings and 15.4% lower than regional earnings. Workplace based earnings for males in Blackburn with Darwen are lower than both corresponding regional and national levels. Male workplace earnings (458.9) in Blackburn with Darwen are 2 nd highest of the six Pennine Lancashire districts after Ribble valley £559.8. Table 2.1: Full-time Resident and workplace earnings for females by district, 2011 Female full-time Resident Workplace Difference % earnings earnings (£) (Residence/Workplace) (A-B) Blackburn with Darwen £339.5 £400.9 -£61.4 -15.3% Burnley £395.1 £437.8 -£42.7 -9.8% Hyndburn £410.0 £383.5 £26.5 6.9% Pendle £398.7 £358.8 £39.9 11.1% Ribble Valley £444.9 £409.0 £35.9 8.8% Rossendale £383.3 £355.0 £28.3 8.0% Lancashire North West GB £421.6 £415.6 £446.3 £398.2 £417.0 £445.7 £23.4 -£1.4 £0.6 5.9% -0.3% 0.1% Source: Annual Survey Hours & Earnings, through Nomis, ONS Median earnings for full time females in Blackburn with Darwen show resident based earnings to be £61.4 or 15.3% lower than workplace earnings. Of the six Pennine Lancashire authorities full time earnings for female residents is lowest in Blackburn with Darwen. Female resident based earnings are £160.80 or 24% lower than national earnings and nearly a fifth lower than regional earnings. The female workplace earnings of (£400.90) in Blackburn with Darwen are the 3 rd highest of Pennine Lancashire districts after Burnley (£437.8) and Ribble valley (£409.0) Page 5 of 9 3: Earnings – Gender pay gap The tables below show workplace place and resident earnings for full-time males and females. Table 3: Resident earnings for full-time workers, 2011 Male FT Female FT Difference (£) (A-B) % (Residence/Workplace) Blackburn with Darwen Burnley Hyndburn Pendle Ribble Valley Rossendale £421.6 £436.0 £453.5 £448.0 £617.2 £457.0 £339.5 £395.1 £410.0 £398.7 £444.9 £383.3 £82.1 £40.9 £43.5 £49.3 £172.3 £73.7 24.2% 10.4% 10.6% 12.4% 38.7% 19.2% Lancashire North West GB £504.7 £498.4 £541.7 £421.6 £415.6 £446.3 £83.1 £82.8 £95.4 19.7% 19.9% 21.4% Resident based earnings Source: Annual Survey Hours & Earnings, through Nomis, ONS Crown copyright Resident male full-time earnings are £82.1 or 24.2% higher than that for females, this difference is the second highest of the Pennine Lancashire districts after the Ribble Valley. All districts show higher full time male than female earnings for residents the largest difference is in the Ribble Valley (£172.30 and Blackburn with Darwen (£82.1). In the Ribble Valley male resident full time earnings are nearly 40% higher than that for females, while in Blackburn with Darwen male resident based earnings are 24% higher than that for females. Table 3.1: Workplace earnings for full-time workers, 2011 Difference Workplace based Male Female FT (£) earnings FT (A-B) Blackburn with Darwen £458.9 £400.9 £58.0 Burnley £392.9 £437.8 -£44.9 Hyndburn £430.5 £383.5 £47.0 Pendle £461.0 £358.8 £102.2 Ribble Valley £559.8 £409.0 £150.8 Rossendale £415.3 £355.0 £60.3 Lancashire North West GB £478.4 £498.5 £540.9 £398.2 £417.0 £445.7 % (Residence/Workplace) £80.2 £81.5 £95.2 14.5% -10.3% 12.3% 28.5% 36.9% 17.0% 20.1% 19.5% 21.4% Source: Annual Survey Hours & Earnings, through Nomis, ONS Crown copyright Full time workplace earnings for male are higher than that for females, exception of Burnley. In Blackburn with Darwen male workplace earnings are nearly 15% higher than that for females. The third largest percentage difference after the Ribble Valley and Pendle. Caution should be exercised when looking at gender pay gaps as they may well, in part, be due to the types of work that males and females tend to do and the different level of pay associated with a particular occupation or industry Page 6 of 9 4: Earnings – Blackburn with Darwen The table below shows resident and workplace earnings for different groups in Blackburn with Darwen, workplace earnings are for those who commute into the borough to work while resident based earnings are for those who work either within the borough or commute elsewhere Table 4 Median Gross Weekly Earnings by Place of Residence and Place of Work, April 2011 Blackburn with Darwen North West Great Britain Residence -based Workplace-based Residence-based Residence-based % Resident/ % Weekly % change Weekly % change Workplace Weekly pay % change Weekly change pay (£) 2010-2011 pay (£) 2010-2011 (£) 2010-2011 pay (£) 2010-2011 Full-time males 421.6 -9.7% 458.9 1.8% -8.1% 498.4 -1.2% 541.7 0.1% Part-time males 150.6 5.9% 185.8 - -18.9% 138.7 1.2% 143.3 -0.1% All males 388.2 -2.0% 417.5 2.5% -7.0% 448.6 -3.4% 498.3 -0.3% Full-time females 339.5 -19.3% 400.9 -9.2% -15.3% 415.6 -0.6% 446.3 1.4% Part-time females 167.7 5.5% 153.6 - 9.2% 156.9 1.5% 158.5 0.1% All females 277.9 -1.3% 328.9 -1.4% -15.5% 306.6 0.0% 319.3 0.7% All full-time employees 412.8 -5.8% 446.2 0.5% -7.5% 460.0 -2.4% 503.1 0.3% All part-time employees 166.4 17.0% 190.8 17.9% -12.8% 152.0 0.9% 154.6 0.0% All employees 328.2 -4.4% 364.0 -3.7% -9.8% 373.7 -1.7% 406.4 0.0% Figures are for all employees on adult rates of pay not affected by absence. Source ONS: Annual Survey of Hours and Earnings Resident based earnings for all full-time employees in Blackburn with Darwen decreased by approximately 6% and by 2.4% in the North West region. Nationally resident based earnings for all full time employees increased by 0.3%. Gross weekly earnings for part-time males increased by 5.9% (increasing from £142.2 to £150.6) and by £8.20 or 5.5% for females. All other groups experienced a decrease in their gross weekly earnings. Gross weekly earnings for full time females decreased by £81.20 or a fifth and by 10% for males. Earnings for part-time female residents is higher than for part-time males, a trend that is echoed both regionally and nationally. Page 7 of 9 All part time employees Workplace Resident All full time employees Part time female Residents based earnings is lower than workplace earnings for all groups. The largest difference in resident and workplace based earnings is for parttime males, full time females and all females. Overall resident based earning for all employees is 10% lower than for workplace employees. Part time male Full time female Full time male 0 100 200 300 400 500 600 5 Median Gross Annual Earnings As well as providing data on average gross weekly earnings, the ASHE also provides information on average gross annual earnings. The figures are available down to the district level. ongoing The median earnings figures highlight the middle value for each area, therefore are not influenced by the very large salaries earned by a relatively small number of high fliers at the top of their professions. Table 5: Median Gross Annual Earnings for full-time Employees by Place of Residence, April 2011 Blackburn with Darwen Burnley Hyndburn Pendle Ribble Valley Rossendale Lancashire North West Great Britain Full-time males £ 21,687 22,201 23,750 24,191 32,058 26,312 Full-time females £ 18,428 21,713 21,029 21,473 22,340 21,277 Full-time employees £ 21,053 21,552 23,231 22,992 26,243 24,483 GB=100 -20.1% -18.2% -11.9% -12.8% -0.4% -7.1% % change 2010-2011 -8.2% 1.6% 7.3% 5.9% 9.3% 10.3% 26,894 26,164 28,596 21,713 21,684 22,938 24,650 24,242 26,357 -6.5% -8.0% 0.0% 2.8% -0.2% 1.4% Source: Annual Survey Hours & Earnings, through Nomis, ONS Median earnings for all employees by place of residence in GB for April 2010 stood at £26,357. For the Lancashire area, the residence-based figure for all employees was £24,650, 6.5% lower than the national average. Blackburn with Darwen’s resident-based figure of £21,053 is 20.1% lower than the national average and 14.6% lower than the Lancashire average. The gender split reveals that for the Blackburn with Darwen, gross annual median earnings for female residents are 15.0% lower than gross annual median earnings for males, this equates to £3,259 less for females than males. Gross annual earnings for both males and females are lowest of the six Pennine Lancashire districts. In general terms the results for the 14 local authorities broadly reflect what would be expected. With respect to full-time earnings Fylde district manages to top the list with an average of £29,333. West Lancashire, Ribble valley and Lancaster recorded figures of 25K or more. Districts recording figures of less than this include many of the districts in the east of the county. Burnley and Blackburn with Darwen recorded median wage levels below the £22K level. Blackpool recorded the lowest gross median annual earnings of the 14 districts in Lancashire with £18,982. Page 8 of 9 The largest change in gross annual full-time earnings has been in the Ribble Valley which saw an increase in gross earnings of 9.3% (£2,230) more than 2010 earnings levels. Rossendale saw increase in gross earnings of £2,292 or 10.3% Further information This briefing was prepared by: Saeed Patel Research and Intelligence Officer Corporate Research Joint Intelligence 3rd Floor Old Town Hall saeed.patel@blackburn.gov.uk 01254 58(5106) Page 9 of 9