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Average salaries by sector
The UK job market in 2024 reveals a wide range of average salaries across sectors, driven by shifts in demand, skill shortages, and the broader economic landscape. This extended overview of salaries by sector provides insights into where the highest earning potentials lie and how they are evolving, which can help both job seekers and employers navigate a competitive market.
Technology and Digital: Technology remains one of the UK’s fastest-growing and highest-paying sectors. The rising need for skilled professionals in areas like software engineering, cybersecurity, artificial intelligence, and data analysis has propelled salary growth. Entry-level positions in tech often start at £30,000 to £40,000, mid-level software developers and data analysts can earn between £45,000 and £70,000. At the senior level, tech roles such as data scientists, machine learning engineers, and cybersecurity experts can command salaries exceeding £90,000, with specialized fields in AI and blockchain potentially reaching six figures. Demand for these roles is fueled by companies’ investments in digital transformation, automation, and securing digital infrastructure, and the trend is expected to continue well beyond 2024.
Healthcare and Pharmaceuticals: In response to an aging population and continued pressure on the NHS, healthcare salaries remain robust. General practice doctors, specialized surgeons, pharmacists, and advanced nurse practitioners earn salaries ranging from £40,000 to over £100,000 annually, with the top-tier roles such as consultants and surgeons at the higher end. Nurses, whose roles have expanded with shortages in the healthcare workforce, generally earn between £30,000 and £45,000, with higher earnings for those in specialties like anesthesia or intensive care. The pharmaceutical sector also commands strong salaries, particularly for roles in research, clinical trials, and regulatory affairs. Pharmaceuticals and biotech companies have increased salaries to attract and retain skilled professionals due to the sector's innovation-driven nature.
Construction and Engineering: Construction and engineering have seen steady wage increases in response to heightened demand for infrastructure development, green building projects, and renewable energy initiatives. Skilled engineers in fields such as civil, structural, electrical, and environmental engineering earn between £35,000 and £70,000. Project managers, particularly those managing large-scale projects, earn higher salaries, often exceeding £80,000. Specialist roles in environmental engineering, energy efficiency, and urban planning are seeing notable growth as sustainable development becomes a priority. Entry-level positions typically start around £25,000, while senior engineers and managers involved in complex infrastructure projects can see salaries reach £100,000 or more, depending on expertise and project scale.
Retail and Hospitality: The retail and hospitality sectors have traditionally offered lower salaries, but labor shortages and the rising cost of living in the UK have contributed to wage growth in 2024. Retail supervisors and store managers earn between £25,000 and £40,000, with luxury retail management positions reaching £50,000 or more. In hospitality, restaurant managers and experienced chefs command higher salaries, with experienced head chefs earning between £35,000 and £55,000, particularly in high-end establishments. Although the majority of retail and hospitality roles still range from £20,000 to £35,000, these sectors are increasingly rewarding professionals with strong customer service skills and management experience to attract and retain talent. Competitive benefits and performance-based incentives are also being offered in some larger organizations to address the sector’s retention challenges.
Education: The education sector in the UK has a wide range of salaries, largely based on role, experience, and location. Classroom teachers typically earn between £28,000 and £40,000, depending on years of service and subject area. Headteachers and senior educational leaders can earn between £60,000 and £100,000, with potential higher earnings in certain regions or private institutions. University lecturers’ salaries vary but generally range from £35,000 to £55,000, with experienced professors and heads of departments earning over £80,000. Despite the positive salary growth seen in 2024, education roles are still facing retention challenges due to workload and job stress. Policies aimed at teacher retention have led to moderate salary increases and additional benefits for educators willing to work in high-need areas or underserved communities.
Public Sector and Government: Salaries in the public sector and government roles offer stability and benefits that are highly valued by professionals. Entry-level administrative roles begin around £25,000, while mid-level positions in local government and public administration pay between £35,000 and £55,000. Roles in specialized areas such as law enforcement, healthcare administration, and social work offer competitive salaries, often ranging from £40,000 to £70,000. Senior positions in policymaking and public service leadership can exceed £90,000, particularly in metropolitan areas. Although public sector salaries may not match those in private sectors like finance, consistent benefits, pensions, and work-life balance contribute to the attractiveness of these roles.
Manufacturing and Logistics: Manufacturing and logistics salaries have seen modest growth in response to a global supply chain reshuffle and rising operational costs. Entry-level roles such as warehouse operatives and machine operators earn between £20,000 and £30,000, while skilled tradespeople and technicians earn closer to £35,000 to £50,000. Logistics and supply chain managers can earn salaries exceeding £60,000, especially in specialized sectors like automotive or pharmaceuticals. As companies work to strengthen supply chains and move towards sustainable operations, roles that contribute to increased efficiency and innovation are expected to become increasingly valuable, with salaries likely to rise in response to demand.
In 2024, salaries in the UK vary significantly by region, mostly due to differences in living costs, types of industries, and job demand. London offers the highest average salaries, often 15-30% above the national average, due to its status as a financial and economic hub. Sectors like finance, tech, and consulting are big here, especially for senior roles, driving wages up.
In northern cities like Manchester, Leeds, and Newcastle, salaries are generally lower than in London, though the gap is shrinking as more companies move outside the capital. Manchester, for example, has competitive wages in tech and creative industries, often close to London rates.
In Scotland, cities like Edinburgh and Glasgow offer higher-than-average salaries in fields like finance, law, and renewable energy. Although these are still 5-10% below London levels, they reflect the strong local job markets. In Wales and Northern Ireland, salaries are generally lower, but Cardiff and Belfast stand out with good pay in healthcare, education, and public administration jobs.
Overall, remote work and government support are helping reduce the regional pay gap, as more people are able to work for companies based in high-salary areas without moving there.
Salary growth
In 2024, salaries in the UK have been growing, largely driven by inflation, rising living costs, and high demand for skilled workers in certain industries. Most sectors have seen salary growth of around 3-5% compared to last year, but some industries, like technology, healthcare, and finance, are seeing increases of 7-10% as competition for talent rises.
The technology sector, for example, is offering higher pay for specialists in areas like AI, cybersecurity, and data science to keep up with fast-growing demand. Healthcare is another area seeing wage growth as hospitals and clinics work to attract and keep skilled professionals amid staff shortages. The finance sector has also seen boosts, especially in roles tied to digital payments, risk management, and sustainable investing, as these areas continue to expand.
Public sector jobs, including education and government roles, are seeing slower but steady increases as the government tries to address the rising cost of living and improve staff retention. Despite these raises, inflation-adjusted earnings for many remain a concern, with salary increases often not fully keeping pace with rising expenses. To attract talent, many employers are also offering additional benefits like flexible work options, bonuses, and career growth opportunities, providing a well-rounded approach to employee compensation beyond just pay.
In 2024, the UK job market is struggling with multiple, interconnected challenges that are reshaping the employment landscape. One of the most pressing issues is the persistent skill shortages affecting various sectors, including technology, healthcare, engineering, and construction. As industries continue to evolve and demand for advanced skills grows, particularly in areas like cybersecurity, artificial intelligence (AI), data analysis, and renewable energy, companies find it increasingly difficult to fill vacancies with qualified candidates. The competition for talent has intensified, leading many organizations to offer more attractive salary packages, signing bonuses, and enhanced benefits to lure potential employees.
In the technology sector, the demand for specialists has surged, with companies competing for expertise in emerging fields such as machine learning and cloud computing. This has resulted in salary increases of up to 10% in some cases, but the growing cost of living, especially in major cities like London, can offset these gains. As inflation remains high, many workers are feeling the pinch in their day-to-day expenses, causing dissatisfaction even among those who receive pay raises. This scenario creates a paradox where employees may earn more but find it harder to make ends meet due to rising housing costs and everyday expenses.
The healthcare sector is also facing significant challenges, intensified by skill shortages and public sector funding limitations. The NHS and private healthcare providers are struggling to recruit and retain staff, particularly nurses and specialists. This issue is not only affecting patient care but also leading to increased workloads and burnout among existing staff. Despite recent government initiatives aimed at boosting wages and improving working conditions, many healthcare professionals are still drawn to higher-paying roles in the private sector or abroad, where they can receive better compensation and benefits.
The construction industry faces its own set of challenges, with rising material costs and labor shortages creating obstacles to meeting demand. The UK's ambitious infrastructure projects and housing initiatives require a skilled workforce, but the inability to find qualified tradespeople has slowed progress. This shortage is compounded by the aging workforce, as many experienced workers are retiring without a sufficient influx of new talent to replace them. The government has recognized the need for vocational training and traineeships to address these gaps, but implementation remains a challenge.
Economic uncertainty plays a critical role in shaping the job market landscape. Factors such as inflation, geopolitical tensions, and trade disruptions have created a climate of caution among employers. Many businesses are hesitant to expand their workforces or invest in new projects, fearing potential downturns. This interversion is particularly evident among small and medium-sized enterprises, which often lack the financial reserves to navigate economic fluctuations. Consequently, the overall job growth has been slower than anticipated, with many sectors not recovering to pre-pandemic employment levels.
Additionally, the shift toward remote and hybrid work has introduced both opportunities and challenges. While remote work allows companies to tap into a broader talent pool, it also means they face increased competition from firms outside the UK, including those in regions with lower labor costs. This shift has made it harder for local employers to retain talent, as skilled workers are now more likely to consider opportunities with global companies that offer flexible work arrangements and attractive compensation packages. Moreover, this trend has led to geographical disparities in salary expectations, where employees in regions with a lower cost of living may seek pay that aligns with higher salaries found in major urban centers.
Furthermore, as the job market becomes increasingly competitive, employers must also prioritize employee satisfaction and retention strategies. Many companies are recognizing the importance of offering not just competitive salaries but also comprehensive benefits, including mental health support, professional development opportunities, and work-life balance initiatives. These factors are becoming essential in attracting and retaining talent in a market where workers are more discerning about their employment choices.
In summary, the UK job market in 2024 is navigating a complex web of challenges, from skill shortages and economic uncertainty to shifts in workforce expectations and remote work dynamics. Employers and job seekers alike must adapt to this evolving landscape, finding innovative solutions to meet the demands of a changing economy. The interplay between these factors will shape the future of work in the UK, making it crucial for all stakeholders to remain responsive and proactive in addressing these challenges.
Looking ahead to 2025 and beyond, the UK job market is expected to undergo significant transformations influenced by several key trends. One major factor will be the continued rise of technology and automation across various sectors. As businesses increasingly adopt advanced technologies like artificial intelligence (AI), machine learning, and automation, the demand for tech-savvy workers will likely soar. This shift will create new job opportunities, particularly in fields like data analysis, software development, and cybersecurity. However, it will also require existing workers to adapt and upskill, which highlights the importance of training and education programs that can prepare the workforce for these changes.
Another important aspect of the future job market will be the ongoing emphasis on flexible working arrangements. Remote and hybrid work models are likely to remain popular, as both employers and employees have recognized the benefits of these options. This trend could lead to a more geographically diverse workforce, with companies tapping into talent from different regions and even countries. While this can help fill skill gaps, it may also intensify competition for jobs, particularly in high-demand sectors.
Additionally, the UK is expected to focus more on sustainability and green jobs in response to growing concerns about climate change. The transition to a low-carbon economy will create numerous opportunities in renewable energy, sustainable construction, and environmental management. As businesses strive to meet government targets for reducing carbon emissions, workers with skills in these areas will be increasingly sought after.
However, challenges will remain. The ongoing impact of economic uncertainty, inflation, and the potential for global market fluctuations may create hurdles for both employers and job seekers. Companies may continue to exercise caution in hiring, affecting job growth rates. Furthermore, the public sector will need to address recruitment and retention issues to ensure vital services can meet the needs of the population.
In summary, while the future of the UK job market presents exciting opportunities driven by technology, flexibility, and sustainability, it also requires a proactive approach to workforce development and support. By prioritizing training, adapting to new working models, and focusing on emerging industries, the UK can navigate these changes effectively, ensuring a resilient and dynamic labor market for years to come.
Tech Nomads is a global mobility platform that provides services for international relocation. Established in 2018, Tech Nomads has a track record of successfully relocating talents and teams. Our expertise in adapting to regulatory changes ensures our clients’ satisfaction and success.
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