Workers in the north of the UK are now more likely to receive a pay rise than their counterparts in the south, according to Totaljobs’ new 2025 salary trends report.
The research, which relied 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 pay rise last year, compared to just 69% in the South East.
Excluding London, the northern regions outperformed the south in terms of 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 southwest of England also lagged behind, seeing 70% of staff enjoy a pay rise.
Despite these trends, London remains the highest paying region overall, with 77% of the capital’s residents reporting a salary increase. Total Jobs said the figures point to a changing economic landscape, with northern centers such as Manchester, Newcastle and Edinburgh gaining prominence as cost-of-living advantages attract more talent.
The highest paying sectors in Newcastle, the North East’s largest employment centre, are legal (average salary £44.2k), technology (£43.8k) and engineering (£42.7k). In Belfast, the highest paying jobs include technology (£42.5k), property (£41.1k) and education (£40.4k). North of the border, Edinburgh offers particularly strong prospects in technology (£49.8k), insurance (£48.4k) and construction (£45.2k).
Natalie Matalon, chief human resources officer at Totaljobs (part of the Stepstone Group), said: “Paychecks tend to go much further in the north than they do in the south – and although there is still a big north-south divide – places like Manchester, Newcastle and Edinburgh are increasingly attractive places to live and work.
Although more than three-quarters of UK workers received a pay rise last year and signs of inflation easing, 56% of them still feel worried about their finances, with those in Wales (63.7%) and Yorkshire (63.5%) feeling particularly anxious about their finances. ) with great concern.
Financial uncertainty is also shaping labor market movements, with 31% of employees planning to look for a new job in 2025, mainly driven by the prospect of higher wages. According to the report, 72% of candidates cite salary as a top priority when choosing a job.
“On average, job seekers only consider new roles that offer at least a 13% pay increase,” Matalon added. “With macroeconomic uncertainty, employees will not leave the relative security of their current employer without significant gains to offset the risks.”