The North East overtakes the South as the UK’s pay rise capital
Workers in the North of the UK are more likely to get a pay rise than their counterparts in the South, according to the new Salary Trends Report 2025 from Totaljobs.
The research, which draws on 17.5 million online job adverts and a survey of 3,000 people, found that 84% of workers in the North East benefited from a pay rise in the past year, compared to just 69% in the South East.
Outside of London, the Northern regions fared better than the South in terms of pay rises, 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 is also lagging behind, seeing 70% of workers enjoying a pay rise.
Despite these trends, London remains the highest paid region, with 77% of those in the capital reporting a rise in wages. Totaljobs said the figures point to a changing economic climate, with Northern hubs such as Manchester, Newcastle and Edinburgh gaining prominence as cost-of-living advantages attract more talent.
The highest paying sectors in Newcastle, the largest employment center in the North East, are Law (£44.2k average salary), Technology (£43.8k) and Engineering (£42.7k). In Belfast, the highest paying occupations include Technology (£42.5k), Logistics (£41.1k) and Education (£40.4k). North of the border, Edinburgh offers 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: “Paychecks tend to go further in the North than in the South and – although there is still a big North-South divide – places like Manchester, Newcastle and Edinburgh are increasingly they become 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 slowing, 56% continue to worry about their finances, while those in Wales (63.7%) and Yorkshire (63.5%) feel more worried.
Financial uncertainty is also creating labor market movement, as 31% of workers plan to look for a new job by 2025, largely due to the prospect of higher wages. According to the report, 72% of candidates cite salary as the most important factor when choosing a role.
Matalon added: “Job seekers on average are considering new roles that offer at least a 13% pay rise.” With macroeconomic uncertainty, workers will not leave the relative security of their current employer without a reasonable benefit to balance the risk.”