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.”

Read more:
North east outstrips South as UK’s pay rise capital