East-West pay divide in the South West

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 the best paid, earning up to £17,000 more than those living in the West. That’s one of the findings of the ManpowerGroup Pay League, a new 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 pay for those living in the region rose 0.8% – half the rate of increase in the UK as a whole, where pay has risen 1.6%. At an average of £24,400, annual pay in the South West is almost £3,000 lower than the UK average of £27,200.

Manpower’s analysis revealed people living in Bath are the region’s best paid, earning £36,700 annually, whereas workers living in Torridge, Devon, receive the South West’s lowest salaries, an average of £19,700 per annum. The higher salaries in the East of the region are driven by a number of high value employers including GCHQ and aeronautics companies who offer higher pay for the skilled workers they require.

Bristol is by far the region’s biggest economic hub, accounting for a quarter of the region’s economy. At £24,900, average pay in Bristol is just above the regional average.

While the overall trend is that pay is rising, there is a marked contrast between the fortunes of workers in some of the South West’s key sectors and a huge gulf between highly skilled, highly paid workers and less skilled roles, which command much lower salaries that do not grow at the same rate.

The energy sector powers the South West’s economy and workers here are the region’s best paid, earning £48,200 annually on average. This has risen by an impressive 12.9% in the past year and, with a decision expected from Brussels soon giving the green light to Britain’s next nuclear power station at Hinkley Point, this could rise even further.

EDF Energy has estimated that the plant would contribute £100m to the local economy during peak construction over the next five to six years and would also create 25,000 new employment opportunities during this period.
October 2014

In contrast, following a period of weakness in the housing market, the real estate sector has stumbled, with pay falling by 4.9% to an average of £24,100. This has not only affected estate agents but has also had a knock on effect on average pay for skilled tradespeople which dropped by 0.5%.

Dugald McIntosh, Head of Engineering at Experis, ManpowerGroup’s global professional services arm, comments, “The energy sector is the jewel in the South West’s jobs crown, with gas, electricity and utilities companies providing employment for a large number of the region’s residents, as well as giving them the opportunity to earn a top salary.

"We expect salaries in the energy sector to continue to outpace the rest of the region if Hinkley Point C goes ahead. This provides a strong contrast with the real estate sector, where pay has fallen by almost 5%, suggesting that the infamous second home purchases in the region in recent years may have taken a dive over the last year.”

ManpowerGroup’s analysis has revealed an increasing pay gap between the region’s men and women. Average annual pay for men in full-time work rose 3% to £15.79 per hour, while women saw their pay rise just 0.9%, to £13.05 per hour.

Dugald McIntosh said: “There is quite a marked difference in pay growth between men and women in the South West. One reason for this growing gender divide is that many of the roles and industries which have thrived in the region in recent years still tend to be male-dominated so the sharp pay rises will be enjoyed by more men than women.

"As well as the increase in the energy sector’s pay, the transportation and storage sector saw pay shoot up 12.1% over the past year and workers in agriculture also enjoyed an average 11.8% pay rise.

"However, we have seen signs that companies are working hard to address the gender gap with EDF Energy’s project to bring more women into the energy sector just one notable example.”