ISLANDERS’ earnings have risen by 1.9% in real terms, new figures have revealed- but the Island’s consumer champion warned that pay remains out of step with inflation, and business leaders cautioned that higher minimum wages are adding to employers’ costs.
Figures published on Friday by Statistics Jersey show that average earnings were 4.5% higher in June than in the same month last year.
But the rise was negated by the rate of inflation at 2.6%, meaning real-term increases were far lower at 1.9%.
That compares with 1.3% growth in 2024 and a 2% fall in 2023.
Carl Walker, chair of the Jersey Consumer Council, said the improvement had to be seen in the wider context of the cost-of-living crisis.
‘It’s encouraging to see that wages are rising again; however, they’re still not fully in line with inflation.
“The important thing to remember is that three years ago, inflation was at double digits, and we’ve never caught up,” he said.
“Prices have run away into the distance, and only now are we being allowed to try and follow them and catch them up.
“It’s going to be extremely difficult, if not impossible, to ever close that gap back to what it was before the cost-of-living crisis began.”
The Average Earnings Index also revealed the impact of the latest minimum wage increase on several industries, which the Chamber of Commerce warned was creating challenges.
Agriculture and fishing recorded the biggest annual change, up 13.4% – which Statistics Jersey said was being driven by longer working hours and the new minimum wage.
Wholesale and retail earnings increased by 5.4%, while hotels, restaurants and bars rose by 5.1% – both increases attributed to the minimum wage.
Chamber of Commerce chief executive Murray Norton said: “It’s no surprise that the increase in the minimum wage has had an inflationary effect on pay right across the economy.
“That doesn’t mean that everyone has seen their wages increase, but it does mean that businesses will be passing on costs to customers, so it won’t be just wage packets that see a rise.
“We would urge caution on further policies that impact the cost and sustainability of doing business in Jersey.”
The construction and quarrying sectors were the only ones to record a fall in wages, with earnings down 0.2% year-on-year.
Construction Council chair Adrian De Gruchy said the data “confirms the current challenges facing the construction sector”, which has seen a series of company failures, including Camerons in 2023 and Style Group earlier this month.
In numbers…
Small growth in wages
- Average earnings rose by 4.5% in the year to June 2025, which equates to a 1.9% increase in real terms once inflation of 2.6% is taken into account.
- Growth was slower than in recent years, following a 6.4% rise in 2024 and an 8.8% increase in 2023, the strongest rate for more than two decades.
- Over the past decade, average earnings have fallen by 1.4% in real terms.
Public and private sectors
- In the private sector, earnings grew by 4.5% (1.9% in real terms), while in the public sector wages rose by 4.8% (2.2% in real terms).
- Since 2015, public-sector earnings have fallen by 0.9% in real terms and private-sector earnings have dropped by 3.1%.
Public and private sectors
- Agriculture and fishing recorded the largest increase at 13.4%
- Private education, health and other services rose by 8.0% over the year.
- Wholesale and retail earnings increased by 5.4%,
- Hotels, restaurants and bars rose by 5.1%
- Financial and legal services recorded below-average growth of 3.1%.
- Construction and quarrying was the only sector to see a fall, with earnings down 0.2% year-on-year.
And on average…
- The median weekly earnings for a full-time employee were £890 in June 2025, which is £40 higher than last year.
- The mean weekly earnings were £1,000, unchanged from the previous year, reflecting the impact of higher earners.
- Weekly earnings ranged from £690 in hospitality to £1,320 in financial services.
- In the longer view, real-term earnings have shown little overall change since 1990.
