23 JUL 2023

The reality of UK’s wage increases

The latest salary data from UK's leading independent job board, CV-Library, presents a sobering reality for UK professionals amidst the welcome news of lower-than-expected inflation in June at 7.9%.

The government and the Bank of England have identified salary increases as a significant driver of inflation, but the data reveals that only three regions in the UK are experiencing wage growth at or above the current inflation rate.

The breakdown of year-on-year salary increases by region is as follows:

8.7% in the East Midlands
8.3% in The North
8.0% in Wales
7.7% in Scotland
7.3% in the North East
7.1% in the South West
6.9% in the North West
6.6% in East Anglia
6.3% in the West Midlands
5.7% in the South East
5.2% in Northern Ireland
2.0% in London

CV-Library's Founder and CEO, Lee Biggins, highlights that despite the perception of exponential wage and inflation growth, the reality for most UK professionals is that wages are not keeping up with inflation. Businesses are facing challenges in balancing their increased costs with the salary expectations of their employees. Offering pay that matches inflation is not financially sustainable at current levels, and it could hinder the long-term recovery of the UK economy.

In conclusion, while UK inflation has decreased to a 15-month low, the majority of regions are experiencing slower wage growth, posing challenges for businesses and individuals alike in maintaining financial stability during these economic conditions.