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Earnings and hours of work

Earnings

The latest Annual Survey of Hours and Earnings (ASHE) reveals that the median weekly earnings for people who work in Herefordshire (work place based - all people who work in Herefordshire regardless of which county they live in) was £536.60* (± £47.02), 12% increase from the amount recorded for 2020 (£480.50).  

Figure 1: Weekly earnings 2021*

Herefordshire weekly earnings (£480.50)
*Note: provisional figures published for 2021

Figure 2: Median weekly earnings from 2008 to 2021

ine chart showing the trend in median weekly earnings between 2008 and 2020 in Herefordshire, the West Midlands and England:  Herefordshire has consistently been lower tan both nationally and regionally.

Source: Annual Survey of Hours and Earnings, 2021

  • Herefordshire’s weekly earnings were significantly lower than that in England £613.30 (± £2.40). For the first time since 2009, Herefordshire's weekly earnings were not recorded as significantly different to the West Midlands region's although the amount was lower £585.0 (± £11.47) – Figure 3.
  • Herefordshire has the lowest median earnings of all 14 West Midlands authorities, however looking at England as a whole it was not among the local authorities that have the lowest median earnings in 2021.
  • Annualised [1] earnings were £27,980 (± £2,194) also significantly lower England £30,979 (± £125) but similar to the West Midlands region, £30,504 (± £598) and If we look at residents based (people who live in Herefordshire i.e. includes those who work outside the county) weekly earnings as opposed to work place based weekly earnings, these were £535.50 (±67.17) and it is lower compared to England and the West Midlands region although the differences are not significant.

Figure 3: Earnings gap in 2021

Infographic showing earnings gap between Herefordshire and England (19% lower) and Herefordshire and the West Midlands (13% lower)

Gender Pay gap

The gender pay gap (GPG) [2] is the difference between average hourly earnings (excluding overtime) of men and women as a proportion of average hourly earnings (excluding overtime) of men.

  • In 2021, Herefordshire’s women’s earnings were 4% lower than men’s earnings, a smaller gap compared the West Midlands region (10%) and England (9%) – Figure 4.

Figure 4: Gender pay gap

Infographic showing females earn 7% less than males in 2020 in Herefordshire

Income

HMRC data for taxpayers shows that the median income from employment was £21,500 in 2018-19 (the latest available).  The median income across the West Midlands region was £28,800 for the same period.

This is residence based and doesn’t account for the hours people work. The median earnings from self-employment were £19,500 compared to £21,200 across the West Midlands, although the difference was not statistically significant. 

[1] Annual salaries are provided by ASHE but they only include earnings of those who are employed in the same job for a year, whereas weekly earnings include all workers.  Therefore annualised salaries were calculated using median weekly earnings, which includes more employees.

[2] Gender pay gap (GPG) - calculated as the difference between average hourly earnings (excluding overtime) of men and women as a proportion of average hourly earnings (excluding overtime) of men. For example, a 4% GPG denotes that women earn 4% less, on average, than men. Conversely, a -4% GPG denotes that women earn 4% more, on average, than men.