Member Article

North East yearly salaries grow by an average of 7%

North East wages have grown for the first time since the recession in August, according to the latest Adzuna Jobs Report.

The report found that average yearly salaries for workers in the region have grown by 7% to just under £30k.

Whilst the region’s growth far eclipses the annual change of a year-on-year wage increase of 1.9%, average salaries in the North East remain lower than the £34k plus national average.

Average salaries in London are above £42k, although have only grown by 0.6%, so while the pay gap between the capital and other UK regions seems to be shrinking, employers in the capital are beginning to slide up salaries, therefore ensuring their continued access to the best staff.

Other highlights of the report showed that total advertised vacancies are rising by 30% year-on-year in August, with a finding of 905,297 available advertised vacancies, meaning that this was an unprecedented job vacancy growth in a seasonally slow month.

However, competition for jobs feel to a post-recession low, with 1.06 jobseekers for every advertised vacancy in August, compared to 1.99 in August 2013.

With every UK region witnessing annual wage growth for the first time since the financial crisis, manufacturing and construction industries are leading the drive behind sector wage growth.

Adzuna has an index of UK job vacancies covering all regions in the UK, the technology collects every job vacancy advertised online in the UK from over 300 sources.

This data is then normalised, de-duplicated, mix-adjusted and outliers are removed in real time to give users an accurate, complete, up to the minute view of the job market.

Co-founder of Adzuna, Andrew Hunter, said: “Much of the UK’s economic good news has arrived on the back of high levels of job creation, but this has often been at the expense of low wages.

“However, as companies enjoy more profit, salary growth is finally starting to outpace inflation.

“A real wage rise marks a significant turning point in the road to economic recovery.

“This time next year, phrases like ‘the cost of living crisis’ may fade into a distant memory.

“The resurgence of manufacturing and construction industry wages is a true sign that country’s economic growth is well and truly back on track.

“If we take construction as a bellwether industry for the British economy, than these figures are certainly impressive.”