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North East outstrips South as pay rise capital of the UK, report finds

People working in the North of the UK were the most likely to have received a pay rise last year compared to colleagues in the South.

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People working in the North of the UK were the most likely to have received a pay rise last year compared to colleagues in the South, according to the latest Salary Trends report from Totaljobs.

Analysis of 17.5 million online job adverts and a survey of 3,000 people in the UK has shown that 84% of those the North East of England saw a pay rise last year, compared to just 69% of those in the South East region.

Excluding London, more workers in all regions of the North of the UK reported pay increases compared with their Southern counterparts.

In Northern Ireland, 83% of employees saw their earnings increase, followed by 78% in Scotland, 77% in the North West, and 73% in Yorkshire.

Along with the South East of England seeing fewer pay increases, the South West also saw relatively low numbers of pay rises, with 70% of people working in the region getting a rise.

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London remained the most well-paid area of the UK to work in, with 77% of workers receiving a pay rise in the capital last year.

While North-South inequality remains a challenge for Britain, Totaljobs’ Salary Trends Report 2025 highlighted a shifting economic environment and emerging opportunities for both workers and employers across the UK.

Data showed that in Newcastle, the largest employment hub in the North East, the highest paying sectors include Legal, with an average salary of £44.2k, followed by Technology (£43.8k) and Engineering (£42.7k).

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Elsewhere in Northern regions, jobs in the Technology sector offer the highest average pay in both Belfast (£42.5k average) and Edinburgh (£49.8k).

Higher paying jobs in Belfast also include Property (£41.1k average) and Education (£40.4k).

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In Edinburgh, the most lucrative roles also include jobs in Insurance (£48.4k average) and Construction (£45.2k).

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Natalie Matalon, chief people officer at Totaljobs said: “Pay checks tend 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.”

Although across the UK three-quarters of people received a pay rise last year and recent figures show overall inflation is cooling, financial concerns remain a worry for 56% of workers.

The research showed those in Wales are the most worried about their finances (63.7%), followed by people in Yorkshire (63.5%).

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Financial concerns continue to have the biggest impact on movement in the labour market and 31% of workers plan to look for a new job in 2025, with higher pay being their top motivator.

72% of candidates cite salary as the most important factor when choosing a role.

Matalon continued: “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.

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“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.”

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