{"id":42141,"date":"2025-09-10T07:55:46","date_gmt":"2025-09-10T07:55:46","guid":{"rendered":"https:\/\/employmenthero.com\/uk\/?post_type=news&p=42141"},"modified":"2026-02-03T17:02:22","modified_gmt":"2026-02-03T17:02:22","slug":"london-lags-behind-as-regional-wage-growth-surges","status":"publish","type":"news","link":"https:\/\/employmenthero.com\/uk\/news\/london-lags-behind-as-regional-wage-growth-surges\/","title":{"rendered":"London Lags Behind As Regional Wage Growth Surges"},"content":{"rendered":"\n
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After centuries of dominance, it appears the capital\u2019s grip on the employment market is loosening in some respects. Despite having the strongest year on year employment growth at 6.7%, with healthy monthly growth of 0.9% (a higher average than all regions), employment rates in all other regions have been more stable, with some even experiencing increases. <\/strong><\/p>\n\n\n\n

Employment Growth Signals a Broader Shift<\/h2>\n\n\n\n

91±¬ΑΟ\u2019s inaugural Annual Jobs Report<\/a> shows the shift follows steep post-Budget<\/a> curves in employment rates across the UK, with London\u2019s previously rapid growth slowing from 1.4% pre-Budget to 0.9% in July 2025. It suggests that while the city remains a hub for employment opportunities, its rapid gains may be plateauing.<\/p>\n\n\n\n

By contrast, all other regions have seen surges in employment growth. In The East, the figure stands at 2.2%, with 2% in The South, 1.5% in the North and 1.4% in The Midlands. The <\/p>\n\n\n\n

London Leads On Wages, But Growth Is Slowing<\/h2>\n\n\n\n

Wages in London still far outweigh the rest of the UK. Compared to the second-highest-paying region, The South, earnings are more than 14% higher and 17% higher than The North. But there\u2019s a more complex picture emerging: wages have stalled, with July figures showing negative growth of 0.8% YoY.  Meanwhile, the North is experiencing the steepest wage increases<\/a> at +8.7% YoY, closely followed by the East at +7.7%, reflecting faster gains outside London.<\/p>\n\n\n\n

Who\u2019s Gaining Ground?<\/h2>\n\n\n\n

Wage growth also varies by generation and gender across regions. Gen Z employees in the North and East have benefited from entry-level salary boosts, while Millennials in London have seen relatively slower growth. Similarly, female employees in regions like the East and North are experiencing stronger YoY wage growth than their male counterparts, echoing national trends of persistent gender wage disparities despite recent gains.<\/p>\n\n\n\n

Thirty-year-old Frontend Engineer, Jess, was one of many millennials caught out by the capital\u2019s comparatively sluggish wage growth. <\/p>\n\n\n\n

\u201cI was working as a Full-stack Engineer in London for the last 4 years, but life was getting too expensive. I work from home, so it felt like the rising costs of things like rent and general living just weren\u2019t worth it, especially because I don\u2019t need to go into an office,\u201d she says. <\/p>\n\n\n\n

She took the leap to relocate to Cambridge when living and working in London became unsustainable. Since relocating to the East, her wages stretch much further.   <\/p>\n\n\n\n

\u201cThe living costs here are slightly cheaper and I\u2019m still earning the same, so overall I have a much better quality of life,\u201d she adds.<\/p>\n\n\n\n

The main driver of regional recovery has been full-time employment. In London it rose to 2.5% month-on-month, outpacing part-time and casual roles, which remain weaker. The North, Midlands, East, and South show similar patterns, with full-time employment recovering fastest, suggesting that businesses are resuming long-term hiring across regions, while temporary roles continue to lag.<\/p>\n\n\n\n

A Cautiously Optimistic Workforce<\/h2>\n\n\n\n

Regional sentiment mirrors national anxieties, too. Many employees remain cautious about mobility, with younger workers especially prioritising job security over career ambition. In the North and East, where growth is strongest, optimism is slightly higher, yet most employees still cite competitive labour markets and economic uncertainty as barriers to confidence.<\/p>\n\n\n\n

Job-Hugging Takes Hold<\/h2>\n\n\n\n

Kevin Fitzgerald, UK Managing Director at 91±¬ΑΟ adds: \u201c<\/strong>While the labour market is showing early signs of recovery, our data shows we\u2019ve still got a long way to go before workers feel confident again. With most people holding a negative view of the jobs market, it\u2019s no surprise we\u2019re seeing more \u2018job hugging\u2019 as employees look to weather the storm. But this isn\u2019t a long-term solution. Job mobility is key for growth – both for people and businesses.\u201d<\/p>\n\n\n\n

91±¬ΑΟ\u2019s regional data underscores a slow but steady U-shaped recovery, with London leading in overall employment levels. But the meaningful gains experienced by other regions are by no means insignificant. If these trends solidify, it could spark the beginning of a more geographically balanced UK labour market. The coming months will be crucial in determining whether or not that happens.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

London\u2019s labour market plateaus as regional wage growth and full-time hiring surge ahead, while London pay dips into negative growth.<\/p>\n","protected":false},"author":454,"featured_media":42144,"template":"","meta":{"inline_featured_image":false,"exclude_from_algolia":false,"author_id":70413,"reading_time":"3 min read","display_reading_time":false},"categories":[],"tags":[],"post_features":[],"class_list":["post-42141","news","type-news","status-publish","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/news\/42141","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/types\/news"}],"author":[{"embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/users\/454"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/media\/42144"}],"wp:attachment":[{"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/media?parent=42141"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/categories?post=42141"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/tags?post=42141"},{"taxonomy":"post_features","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/post_features?post=42141"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}