March 26, 2012
-- Huge salary premiums are being paid for low skilled workers in London, according to the latest research on private sector wages from job search website Adzuna.co.uk. Nannies, Bar Staff and Customer Service workers are taking home 30% more than average in London, suggesting a shortage of labour for these roles. In other parts of the UK, private sector salaries are falling well below national averages, spelling worrying times for the public sector as the government plans to regionalise pay.
The Top 10 Cities in the UK were ranked by average salary using Adzuna’s comprehensive search index of over 500,000 live job ads, as well as the major regions. Adzuna also analysed specific job titles by location to see regional differences in pay by job sector.
The study shows that private sector workers in the West Country, the Midlands and the North of England are paid at least 15% less than the national average. If the pay policy suggested by the Chancellor is fully implemented, this means that tens of thousands of the 140,000 workers in the Department for Work & Pensions, the Home Office and the Department for Transport could expect pay cuts of up to £5,000.
While Londoners overall are being paid 20% more than the national average, it’s Nannies, Bar Staff and Customer Service workers most in demand. Admin, Secretarial & Finance workers in London are also paid more than 25% above the national average for roles in these sectors which, even with higher costs of living in the capital, is a significant premium above other cities in the UK.
But the London workforce shouldn’t be popping the champagne corks yet. The real private sector ‘London weighting’ for roles such as journalists and recruitment consultants is less than 10% and if George Osbourne’s regional pay policy is enacted, the London allowances paid to some public sector workers in inner London (up to 20% of salary in sectors such as Nursing) could come into line with lower private sector equivalents, meaning pay cuts of up to 5% even in the capital.
Doug Monro, Co-Founder of Adzuna, said “Because we list nearly every UK job ad in our search engine, we get a great birds eye view of what employers are paying across the UK. Workers will always be paid a premium where demand outstrips supply, but the changes could well affect the prosperity of the regions and lead to even more migration into an overcrowded London.”