Janice R. Andrews
Workers in the North East of England enjoyed the highest number of pay rises in the UK last year, according to a new report by Totaljobs, one of the country’s leading hiring platforms. The region has been crowned the UK’s pay rise capital, with 84% of employees receiving a salary increase in 2023. However, despite this positive trend, the North East still has one of the lowest average salaries in the country, highlighting a persistent North-South divide in earnings.
North Leads in Pay Rises, but South Earns More
The report reveals a stark contrast between the North and South of the UK. While the North East saw the highest proportion of pay rises, workers in the South East and South West were less likely to receive salary boosts, with only 70% reporting increases. Nationally, 75% of workers received a pay rise last year.
London remains the highest-paid region, with employees earning an average of £40,500 annually. Despite this, only 77% of Londoners reported a pay rise, lower than the North East’s 84%. Northern Ireland and Scotland also performed well, with 83% and 78% of workers respectively seeing their salaries increase.
Highest and Lowest-Paid UK Cities
The report also highlights the UK’s highest and lowest-paid cities. London tops the list, followed by Birmingham (£37,000), Manchester (£36,700), Bristol (£36,600), and Edinburgh (£35,900). On the other end of the scale, Belfast is the lowest-paid city, with an average salary of £32,700. Sheffield (£33,700), Cardiff (£34,000), Nottingham (£34,200), and Newcastle (£34,400) round out the bottom five.
Natalie Matalon, Chief People Officer at Totaljobs, commented: “Paychecks tend to go a lot further in the North than in the South. While the North-South divide persists, cities like Manchester, Newcastle, and Edinburgh are becoming increasingly attractive for their affordability and lifestyle.”
Cost of Living Concerns Drive Job Searches
Despite wage growth, financial worries remain a significant concern for UK workers. The report found that 56% of employees are anxious about their finances due to the rising cost of living, with 31% planning to seek higher-paid jobs in 2024. Flexible working options are also a key factor, with 37% of workers stating that such benefits would influence their job choices.
Welsh workers are the most concerned about their finances, with 63.7% reporting worries, closely followed by those in Yorkshire (63.5%).
Wage Growth Outpaces Inflation, but Challenges Remain
Recent data from the Office for National Statistics (ONS) shows that pay growth increased by 5.6% annually between September and November 2023, outpacing inflation. However, many workers are not feeling the benefits. Salary satisfaction has dropped to 63%, and economic pressures continue to weigh heavily on households.
Ms. Matalon added: “Uncertainty is feeding into consumers’ financial worries this year. While benefits like flexible working and health insurance are important, salaries remain the main driver for those seeking new roles. Businesses must reassess their compensation packages to stay competitive in a tight labour market.”
Sectors with the Biggest Pay Rises
Postal workers saw the most significant pay rises, with an average increase of 18% in 2023, taking their average salary to £33,583. Other roles with notable pay boosts include special needs teachers, general doctors, and waiters/waitresses.
Conclusion
The UK’s pay rise capital may be in the North East, but the region’s lower average salaries underscore the ongoing economic disparities across the country. As Northern cities become more attractive for their affordability and quality of life, businesses must adapt to attract and retain top talent. With financial concerns driving job searches and wage growth failing to fully alleviate economic pressures, employers need to offer competitive salaries and benefits to remain appealing in an increasingly competitive market.
For workers, the message is clear: while pay rises are on the rise, the quest for financial stability and job satisfaction continues to shape career decisions in 2024.
