• Advertised salaries in North East have dropped with a 2.75% decrease compared to a UK average increase of 0.4%
  • Salaries advertised behind the cost of living as organisations balance a battle for talent against soaring energy costs and interest rates
  • No sector has seen salary rises matching the cost of living, while some are seeing decreases against a patchwork economy
  • Despite more reportedly looking for work, many are too nervous to risk change in employment as living costs build

New research from Reed has revealed that despite the increase in interest rates, the cost of living and energy prices, salaries in the North East are not keeping up, with companies advertising stagnating salaries across the UK.

From analysis of more than 9.35 million jobs posted on Reed.co.uk across the UK since 2018, as part of Reed’s suite of annual salary guides, advertised salaries are sitting at pre-pandemic levels, with any rise over the past two years dropping back down to 2020 levels. Salaries in the North East are no exception, as they fall despite soaring living costs.

In spite of talk about ‘The Great Resignation’, Reed’s salary guides and research is showing that this has become more of a ‘Great Flirtation’, with businesses in an ongoing fight to attract talent, a lack of available jobseekers in the market, and the perceived risk of changing roles during economic flux.

The annual salary guides also found salaries in the North East varying between sectors, with some like procurement and supply chain experiencing an increase of 8.4%, but others such as insurance and financial services seeing a decrease (-9.3%).

The decrease in average salaries is concerning news in a difficult year for the economy, in the context of soaring inflation, with the Consumer Price Index at 5.5%, it shows that the financial effects of the pandemic are evident in salaries.

Mike Harrison, Reed’s regional managing director for the North East, said: Like many other parts of the country, the North East has been devastated by the economic impact of the last two years. However, despite average salaries decreasing, some sectors are seeing increased salaries as the pandemic and Brexit leaves a patchwork effect.

“Businesses in the North East are truly facing a fierce fight for talent in a candidate-driven market, particularly in key sectors such as business support, which is likely to be why we’re seeing variations in salary increases across sectors – as companies try to fill their most pressing vacancies.

“With competition fierce, it’s more important than ever that businesses work closely with their HR teams to review their remuneration and benefits packages to be in with a fighting chance of attracting the best professionals to help their organisation flourish.”