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North east outstrips South as UK’s pay rise capital

by January 17, 2025
January 17, 2025
North east outstrips South as UK’s pay rise capital

Workers in the North of the UK have become more likely to receive a pay rise than their Southern counterparts, according to the new Salary Trends Report 2025 from Totaljobs.

The research, drawing on 17.5 million online job adverts and a survey of 3,000 people, found that 84% of employees in the North East benefited from a boost in pay last year, compared with just 69% in the South East.

Excluding London, Northern regions outperformed the South for salary growth, with 83% of workers in Northern Ireland receiving a pay rise, followed by Scotland (78%), the North West (77%) and Yorkshire (73%). Meanwhile, the South West of England also lagged behind, seeing 70% of employees enjoy a pay increase.

Despite these trends, London remains the best-paid region overall, with 77% of those in the capital reporting a salary bump. Totaljobs said the figures point to a shifting economic landscape, in which Northern hubs such as Manchester, Newcastle and Edinburgh are gaining prominence as cost-of-living advantages attract more talent.

The highest paying sectors in Newcastle, the largest employment hub in the North East, are Legal (£44.2k average salary), Technology (£43.8k) and Engineering (£42.7k). In Belfast, top-earning jobs include Technology (£42.5k), Property (£41.1k) and Education (£40.4k). North of the border, Edinburgh offers especially strong prospects in Technology (£49.8k), Insurance (£48.4k) and Construction (£45.2k).

Natalie Matalon, Chief People Officer at Totaljobs (part of The Stepstone Group), said: “Pay cheques tend to go a lot further in the North than they do in the South and – while there is clearly still a big North-South divide – places like Manchester, Newcastle and Edinburgh are becoming increasingly attractive places to live and work.”

Despite more than three-quarters of UK workers receiving a pay rise last year and signs that inflation is cooling, 56% continue to worry about their finances, with those in Wales (63.7%) and Yorkshire (63.5%) feeling most concerned.

Financial uncertainty is also shaping labour market movements, as 31% of employees plan to look for a new job in 2025, mainly driven by the prospect of higher pay. According to the report, 72% of candidates cite salary as their top priority when choosing a role.

Matalon added: “Jobseekers on average are only considering new roles offering at least a 13% pay rise. With macro-economic uncertainty, employees won’t leave the relative safety of their current employer without meaningful gain to balance the risk.”

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North east outstrips South as UK’s pay rise capital

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