North-South Pay Divide Grows as Workers in the North See More Salary Increases, New Report Shows

Workers in the northern regions of the UK are increasingly likely to receive a pay rise compared to their counterparts in the South, according to the latest Salary Trends Report 2025 from Totaljobs. The research, which analyzed 17.5 million online job ads and surveyed 3,000 people, reveals a noticeable divide in pay growth across the country.

The report found that 84% of employees in the North East received a pay increase last year, significantly outpacing the 69% of workers in the South East. Other northern regions, including Northern Ireland (83%), Scotland (78%), the North West (77%), and Yorkshire (73%), also saw higher salary growth compared to the South West of England, where just 70% of employees benefited from a pay rise.

Despite this trend, London remains the highest-paying region overall, with 77% of workers in the capital reporting a salary increase. However, Totaljobs suggests that the growing salary increases in the North signal a shifting economic landscape, as cities such as Manchester, Newcastle, and Edinburgh become more attractive to workers seeking cost-of-living advantages.

The report also highlighted the highest-paying sectors in key northern cities. In Newcastle, the top industries for high-paying jobs include Legal (£44.2k average salary), Technology (£43.8k), and Engineering (£42.7k). Belfast’s leading sectors are Technology (£42.5k), Property (£41.1k), and Education (£40.4k), while Edinburgh offers particularly strong prospects in Technology (£49.8k), Insurance (£48.4k), and Construction (£45.2k).

Natalie Matalon, Chief People Officer at Totaljobs, commented, “Pay cheques tend to go a lot further in the North than they do in the South. While there is still a significant North-South divide, cities 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 slowing, 56% of employees are still worried about their finances. Workers in Wales (63.7%) and Yorkshire (63.5%) expressed the most concern.

Financial uncertainty is also affecting job market dynamics, with 31% of employees planning to look for a new job in 2025, largely driven by the potential for higher pay. The report found that 72% of job candidates prioritize salary when choosing a new role. Matalon added, “Jobseekers are now only considering roles offering at least a 13% pay rise. With economic uncertainty, employees are less likely to leave their current job without a significant pay increase to offset the risk.”