Corporate Research briefing paper Annual Survey of Hours & Earnings Annual Survey of Hours & Earnings (ASHE) - Earnings This release presents the results of the Annual Survey of Hours and Earnings (ASHE) for April 2010, 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. The survey for 2010, is based on 16,804,000 returns. 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 7 Summary The 2010 result reveals that the average full-time median weekly earnings for residents in the Blackburn with Darwen area is £439.9, 12.3% lower than the national average of £501.80. Across Pennine Lancashire resident earnings differ from workplace earnings, with the exception of Blackburn with Darwen and Burnley, in four of the six districts residents earn more than people who commute into the area to work. The largest difference is in the Ribble Valley where residents earn on average £44.5 a week more than those people that work in businesses in the area. In Blackburn with Darwen resident based earnings are £5.10 less than people that work in the borough and in Burnley this difference is £1.00. Over the last year resident based earnings for all full-time employees in Blackburn with Darwen increased by 2.5% and by similar but lesser amounts regionally, 2.4% and nationally 2.3%. Workplace earnings in contrast increased by 1.6% while regionally and nationally they increased by 2.3 and 2.4% respectively. 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 £466.2 in Blackburn with Darwen is considerably higher than the female earnings of £424.8 (i.e. the median wage for male residents is 9.7% higher than that for females). This difference between male and female full-time earnings in Blackburn with Darwen is the lowest of any Pennine Lancashire district. Similarly the median weekly earnings (£453.1) for males who work in Blackburn with Darwen is 2.6% or £11.60 higher than that for females (£441.5). Over the last year resident full-time earnings for males increased by 5.2% and for females by 6.7%, workplace earnings during the same period increased by 2.2% for males and by 5.3% 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 and Burnley. Burnley has the lowest resident based earnings and Rossendale the lowest workplace based earnings of the six Pennine Lancashire districts All districts show higher male than female resident earnings, the largest difference being in the Ribble Valley (£174.10) and Rossendale (£134.70) and the lowest is in Blackburn (£41.40). All districts with the exception of Hyndburn have higher male full-time workplace earnings than females. In Blackburn male workplace earnings are 2.6% higher than female earnings, while in Rossendale male workplace earnings exceed female earnings by 44%. In Pendle and the Ribble Valley male earnings are higher than female earnings by a quarter. Page 2 of 7 Full-time 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 2010 was £439.9, while workplace based earnings was £445. 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: Resident and Workplace based earning for Pennine Lancashire districts, 2010 Resident based Workplace Difference earnings based earnings % (Residence/Workplace) £ (A-B) (A) (B) Blackburn with Darwen 439.9 445.0 -5.1 -1.1% Burnley 410.0 411.0 -1 -0.2% Hyndburn 428.7 411.2 17.5 4.3% Pendle 416.1 407.0 9.1 2.2% Ribble Valley 488.0 443.5 44.5 10.0% Rossendale 424.8 399.8 25 6.3% Lancashire North West GB 446.9 471.2 501.8 452.5 467.1 500.4 -5.6 4.1 1.4 -1.2% 0.9% 0.3% Source: Annual Survey Hours & Earnings, through Nomis, ONS The 2010 result reveal: Median weekly earnings for full-time residents in Blackburn with Darwen (£439.9) was £62 or 12.3% lower than the national average of £501.8 and 6.6% lower than the North West average. All districts have resident based earnings that are lower than the national average. Median workplace earnings for Blackburn with Darwen were 11.1% lower than the national average of £500.4 and 4.7% lower than the North West average. With the exception of Ribble Valley all Pennine Lancashire districts have resident based earnings that are lower than the North West average. With the exception of Blackburn with Darwen and Burnley, in four of the six districts residents earn more than people who commute into the area to work. The largest difference is in the Ribble Valley where residents earn on average £44.5 a week more than those people that work in businesses in the area. In Blackburn with Darwen resident based earnings are £5.10 less than people that work in the borough and in Burnley this difference is £1.00. Page 3 of 7 2 Residence and Workplace by gender and full-time work Table 2: Full-time Resident and workplace earnings for males by district, 2010 Male full-time Resident Workplace Difference % based based (£) (Residence/Workplace) earnings earnings (A-B) Blackburn with Darwen 466.2 453.1 13.1 2.9% Burnley 420.0 431.8 -11.8 -2.7% Hyndburn 439.8 409.7 30.1 7.3% Pendle 454.1 445.3 8.8 2.0% Ribble Valley 613.1 473.0 140.1 29.6% Rossendale 488.1 442.0 46.1 10.4% Lancashire North West GB 507.7 504.3 541.9 493.0 500.0 540.5 14.7 4.3 1.4 3.0% 0.9% 0.3% Source: Annual Survey Hours & Earnings, through Nomis, ONS Median earnings for full-time males in Blackburn with Darwen shows resident based earnings to be 2.9% higher than workplace based earnings. Male resident based earnings are £75.70 or 14% lower than the national average and workplace earnings are 16.2% or £87.40 lower than national workplace earnings. Male resident based earnings are lowest in Burnley £420 and highest in the Ribble Valley £613.1 The Ribble Valley shows the largest percentage difference 29.6% between resident and workplace earnings and Hyndburn the lowest, resident based earnings in the Ribble valley are £140.1 higher than workplace based earnings. With the exception of Burnley all areas have higher resident than workplace based earnings. In Burnley resident based earnings are 2.7% or £11.80 lower than workplace earnings Hyndburn has the lowest workplace based earnings and Ribble valley the highest. Table 2.1: Full-time Resident and workplace earnings for females by district, 2010 Female full-time Resident Workplace Difference % based based (£) (Residence/Workplace) earnings earnings (A-B) Blackburn with Darwen 424.8 441.5 -16.7 -3.8% Burnley 354.5 368.2 -13.7 -3.7% Hyndburn 395.9 415.0 -19.1 -4.6% Pendle 390.5 358.5 32 8.9% Ribble Valley 439.0 377.6 61.4 16.3% Rossendale 353.4 308.2 45.2 14.7% Lancashire North West GB 405.1 418.1 440.0 388.3 417.8 439.8 16.8 0.3 0.2 4.3% 0.1% 0.0% Source: Annual Survey Hours & Earnings, through Nomis, ONS Earnings of female residents in Blackburn with Darwen are £15.20 or 3.5% lower than the national average, workplace earnings show little or no difference compared to national earnings. In Blackburn with Darwen the difference in earnings for females between resident and those who commute into the area to work earnings show wages for female resident’s to be £16.70, or 3.8% lower than workplace based earnings of £441.5. The largest wage differential between workplace and resident-based earnings amongst female full-time employees is £61.40 in the Ribble Valley. Burnley and Rossendale have lowest residents based earnings for females and the Ribble Valley the highest. Rossendale has the lowest workplace earnings for females and Blackburn with Darwen the highest. Page 4 of 7 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, 2010 Male Female Resident based earnings Difference £ FT FT Blackburn with Darwen 466.2 424.8 41.4 Burnley 420.0 354.5 65.5 Hyndburn 439.8 395.9 43.9 Pendle 454.1 390.5 63.6 Ribble Valley 613.1 439.0 174.1 Rossendale 488.1 353.4 134.7 Lancashire North West GB 507.7 504.3 541.9 405.1 418.1 440.0 % (Residence/Workplace) 9.7% 18.5% 11.1% 16.3% 39.7% 38.1% 102.6 86.2 101.9 25.3% 20.6% 23.2% Source: Annual Survey Hours & Earnings, through Nomis, ONS Crown copyright All districts show higher male than female earnings, the largest difference is in the Ribble Valley (£174.1)and Rossendale (£134.70) and the lowest is in Blackburn with Darwen (£41.40) Male full-time earnings for residents in the Ribble Valley and Rossendale are 40% higher than female full-time resident earnings, far in excess of the local, regional and national levels. The Ribble valley has the highest resident based earning of any Pennine Lancashire district with £613.1. Hyndburn and Burnley have the two lowest earnings for male residents. Burnley and Rossendale have the lowest earnings for female residents. Table 3.1: Workplace earnings for full-time workers, 2010 Workplace based Male Difference Female FT earnings FT (£) Blackburn with Darwen 453.1 441.5 11.6 Burnley 431.8 368.2 63.6 Hyndburn 409.7 415.0 -5.3 Pendle 445.3 358.5 86.8 Ribble Valley 473.0 377.6 95.4 Rossendale 442.0 308.2 133.8 Lancashire North West GB 493.0 500.0 540.5 388.3 417.8 439.8 % (Residence/Workplace) 104.7 82.2 100.7 2.6% 17.3% -1.3% 24.2% 25.3% 43.4% 27.0% 19.7% 22.9% Source: Annual Survey Hours & Earnings, through Nomis, ONS Crown copyright All areas with the exception of Hyndburn show male full-time workplace earnings to be higher than female earnings. The smallest difference is in Hyndburn where male workplace earnings are lower than female earnings by 1.3% Blackburn with Darwen’s male workplace earnings is 2.6% higher than female earnings. The largest difference is Rossendale where male earnings are 44% higher than female earnings. Pendle and Ribble Valley male earnings are in excess of female earnings by a quarter. 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 5 of 7 4: Earnings – Blackburn with Darwen Table 4 Median Gross Weekly Earnings by Place of Residence and Place of Work, April 2010 Blackburn with Darwen Residence based Workplace-based North West Great Britain Residence-based Residence-based % Resident/ % Weekly change Weekly % change Workplace Weekly pay % change Weekly pay (£) 2009pay (£) 2009-2010 (£) 2009-2010 pay (£) 2010 Full-time males 466.2 Part-time males 124.0 5.2% 453.1 2.2% 2.9% % change 2009-2010 504.3 1.2% 541.9 1.4% - - - 150.7 4.5% 154.6 7.7% All males 396.9 -2.1% 407.3 -0.4% -2.6% 464.1 0.9% 500.4 1.2% Full-time females 424.8 6.7% 441.5 5.3% -3.8% 418.1 2.5% 440.0 3.1% Part-time females 159.0 11.3% - - 154.9 1.6% 158.1 1.4% All females 282.2 -0.1% 333.2 4.3% -15.3% 307.2 3.1% 317.4 2.1% All full-time employees 439.9 2.5% 445.0 1.6% -1.1% 471.2 2.4% 501.8 2.3% All part-time employees 142.0 -1.0% 161.6 7.1% -12.1% 150.7 -0.1% 154.6 1.0% All employees 346.9 1.2% 377.9 1.9% -8.2% 381.3 2.0% 406.7 1.8% Figures are for all employees on adult rates of pay not affected by absence. Source ONS: Annual Survey of Hours and Earnings Table 4 shows workplace and resident based earnings for different groups in Blackburn with Darwen. The table shows that Resident based earnings for all full-time employees in Blackburn with Darwen increased by 2.5% and by similar but slightly lesser amounts regionally and nationally. Workplace based earnings in contrast only increased by 1.6%, while regionally and nationally they increased by 2.3-2.4%. Resident earnings for male full-time employees increased by 5.2% from 2009 levels and by 1.2% in the North West, nationally earnings for this group increased by 1.4%. Blackburn with Darwen Workplace Resident All part-time employees All full-time employees Part-time females Part-time males Full-time females Full-time males 0 100 200 300 400 500 600 Page 6 of 7 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. 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 2010 Blackburn with Darwen Burnley Hyndburn Pendle Ribble Valley Rossendale Lancashire North West Great Britain Full-time males £ 24,859 22,954 22,188 22,975 29,647 25,023 Full-time females £ 21,079 17,802 19,799 20,843 18,684 Full-time employees £ 22,845 21,089 21,653 21,609 23,966 21,874 GB=100 87.9 81.1 83.3 83.1 92.2 84.1 % change 2009-2010 -1.1% 1.6% 1.3% -2.8% -6.1% 25,661 26,204 28,265 20,917 21,447 22,533 23,926 24,259 26,000 92.0 93.3 100 0.5% 1.0% 0.3% Source: Annual Survey Hours & Earnings, through Nomis, ONS Median earnings for all employees by place of residence in GB for April 2009 stood at £26,000. For the Lancashire area, the residence-based figure for all employees was £23,926, 8.0% lower than the national average. Blackburn with Darwen’s resident-based figure of £22,845 is 12.1% lower than the national average and 4.5% lower than the Lancashire average. The gender split reveals that for the Blackburn with Darwen, gross annual median earnings for female residents are 17.9% lower than gross annual median earnings for males, this equates to £3,780 less for females than males. 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 £28,692. Lancaster, South Ribble, and West Lancashire 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 recorded median wage levels well below the £22K level. Blackburn with Darwen recorded median wage levels higher than £22K but lower than £24K or more earned in other parts of the county. Earnings in Rossendale (£21,874) were closer to the £22k mark, than those of Hyndburn (£21,653) or Pendle residents (£21,609). Burnley has the lowest gross earnings of any Pennine Lancashire district with £21,089. The largest percentage change in gross annual full-time earnings has been in Rossendale which experienced a reduction in of £1400 from 2009 levels, gross earnings in this case are 6.1% lower than the previous year. The Ribble Valley also saw a decrease in gross earnings of 2.8% (£700) less than 2009 earnings levels. All other districts experienced modest increases in gross earnings. 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 7 of 7