Huge pay gap between east and west of SW region

There is a huge pay gap between workers living in the East and West of the South West region, with the people living in the East amongst the best paid in the country, earning up to £12,500 more than those living in the West, where earnings are well below the national average.

That is one of the findings of the ManpowerGroup Pay League, a series of local insights into UK pay trends from ManpowerGroup, the world leader in innovative workforce solutions. ManpowerGroup’s analysis is based on the Annual Survey of Hours and Earnings from the Office of National Statistics.

Average full time pay for those living in the region rose 1.5% last year to £31,000 – more than double the rate of increase seen across the UK as a whole, at 0.6%. But despite this rise, the region’s average pay still lags behind the UK average of £33,500.

Manpower’s analysis revealed people living in Tewkesbury are the region’s best paid, earning £37,300 annually, with the region’s lowest paid workers in Torbay earning an average of £24,800 per annum. Bath is the region’s best paid city, with residents earning, on average, £34,200 annually, nearly £4,000 more than Bristol’s residents and almost £7,000 more than those from Plymouth.

While the overall trend is that pay is rising, average pay in the public sector fell 0.4% to £31,800 as the government’s renewed commitment to cuts began to bite. Average pay in the private sector continues to lag behind at £29,700, but rose 0.3%.

Average pay in the service sector rose 0.9% to £29,400, while the production sector’s pay fell 1.7% to £33,300. Skilled traders’ pay rose 2.5% to £25,800 but managers and directors fared less well with their average pay falling 0.4% to £45,600.

Dugald McIntosh, Head of Engineering at Experis, ManpowerGroup’s global professional services arm, comments, “There are lots of opportunities for workers across the region and competition for talent is helping push up wages. Some employers are so keen to find the right hires that they are looking to bring in talent even when they’re not hiring for specific positions. We expect demand for candidates to rise even further with new opportunities opening up in the region over the next few months, like the new power station at Hinkley Point.”

“In many parts of the region, it’s candidates who are calling the shots. Competition for the best talent means candidates are being much more demanding over terms. Firms are offering generous working conditions and higher pay as they compete for top hires, but candidates are loath to travel distances of even a couple of miles for work, meaning companies outside city centres can struggle to bring in new workers.”

ManpowerGroup’s analysis has revealed that the gender pay gap in the South West is narrowing. Women, who on average earn £13.25, compared to men who earn £15.78, saw their pay rise 1.7% while men’s fell 0.3%.

Dugald McIntosh again: “The gender pay gap in the South West seems to be narrowing.  One reason for this slimming gender divide is that some of the roles and industries which tend to be male-dominated, such as the production sector, have seen average pay fall. In contrast, the service sector, which tends to attract more women, has seen pay increase over the past year. We have also seen attempts from companies in the region to address the gender pay gap, with many companies offering childcare vouchers to help women come back to work after maternity leave and other companies, like EDF Energy, trying to bring more women into sectors where men have traditionally dominated.”