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North East leads as UK’s pay rise capital

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The North East of England is outpacing the South as the UK’s leading region for pay increases in 2024, according to Totaljobs’ latest Salary Trends Report.

The report, based on an analysis of 17.5 million job adverts and a survey of 3,000 workers, found that 84 percent of employees in the North East received a pay rise – notably higher than the 69 percent recorded in the South East.

Workers across other northern regions also reported higher rates of pay increases compared to their southern counterparts. In Northern Ireland, 83 percent of employees saw a rise in earnings, followed by 78 percent in Scotland, 77 percent in the North West, and 73 percent in Yorkshire.

In contrast, the South West and South East experienced relatively lower rates of pay increases, with 70 percent and 69 percent of workers, respectively, receiving higher salaries. London, where 77 percent of employees received a pay rise last year, remains the UK’s highest-paid region overall.

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High-Paying Sectors in Northern Regions

Key cities in the North offer competitive salaries in several industries. In Newcastle, the top-paying sectors include Legal, with an average salary of £44,200, followed by Technology (£43,800) and Engineering (£42,700).

Belfast also demonstrates strong earnings potential, with Technology roles averaging £42,500, Property at £41,100, and Education at £40,400. Edinburgh leads in northern cities for Technology sector pay at £49,800, with other high-paying industries including Insurance (£48,400) and Construction (£45,200).

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

“As employers have traditionally focused on cost of labour in the market, as opposed to cost of living when establishing salary ranges and pay, businesses should keep in mind that as Northern cities become more attractive for their affordability and lifestyle, competition for talent will only intensify and increase the costs to attract and retain the best talent beyond long-established local norms.”

Financial Concerns Persist Despite Pay Rises

Despite pay increases benefiting three-quarters of UK workers, financial concerns remain a significant issue. Over half (56%) of employees expressed worries about their financial situation, with workers in Wales (63.7%) and Yorkshire (63.5%) reporting the highest levels of concern.

Inflation, although cooling, continues to impact workers’ confidence in their financial stability. According to the report, 31 percent of employees plan to seek new jobs in 2025, with higher pay cited as the primary motivation.

Salary remains the most important factor for jobseekers, with 72 percent of candidates identifying it as their top consideration when choosing a role. As financial pressures persist, businesses may face increased competition for talent, particularly in regions where pay growth and opportunities are on the rise.

Matalon added, “Whilst our findings present an interesting emerging trend, they also show how, across the country, uncertainty is continuing to feed into consumers’ worries about their finances this year. While benefits like flexible working and health insurance are important to look at, salaries are by far the main driver behind those looking for a new role this year.

“Totaljobs’ Salary Trends report shows jobseekers on average are only considering new roles that offer at least a 13% pay rise. With macro-economic uncertainty, employees will not give up the safety of their current employer without meaningful gain to balance the risk. Employers looking to attract the best talent need to ensure they are properly benchmarking salaries to stay competitive.”

Alessandra Pacelli is a journalist and author contributing to HRreview, an HR news and opinion publication, where she covers topics including labour market trends, employment costs, and workplace issues. She is a journalism graduate and self-described lifelong dog lover who has also written for Dogs Today magazine since 2014.

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