A recent report highlights the significant wage gap between the North East and London, showing the struggles of workers in the region.
Sunderland: A new report shows that workers in the North East are really feeling the pinch. It says that by August, a London worker earns what someone in the North East makes in a whole year. Ouch!
The Centre for Cities thinktank just released this eye-opening study. It reveals that the average salary in the North East is £32,200, while in London, it’s a whopping £49,500. That’s over £17,000 difference!
Out of 63 major towns and cities looked at, none in the North East had above-average salaries. The report suggests that cities with more high-tech jobs are doing better. Places like Cambridge and Milton Keynes have way more jobs in sectors like AI.
Sadly, Sunderland and Middlesbrough are at the bottom of the list for new economy jobs. North East mayor Kim McGuinness said the report is tough to read, but not surprising. She pointed out years of underinvestment in the region.
She’s determined to change things. McGuinness plans to launch a New Deal for North East Workers this spring. She also mentioned a recent job announcement from Jatco in Washington as a positive sign.
The report highlights that the North East has the lowest average weekly earnings in England at £619.60. That’s way behind London’s £968.40 and even lower than the North West and Yorkshire.
Sunderland is struggling too, with the lowest business start-up rate and a high percentage of people without formal qualifications. But there’s hope! Efforts are underway to diversify the economy beyond just the Nissan factory.
There are plans for new film studios and redevelopment projects in Sunderland. The report notes that while Nissan is important, the city is trying to branch out and not rely solely on one industry.
City Council leader Michael Mordery shared some good news. Sunderland’s employment rate is now above the North East average, and wages have increased. He’s committed to bringing in more jobs and investment.
Centre for Cities is urging the Labour Government to step up and deliver on growth promises. They believe 2025 needs to be a year of action, especially regarding the Industrial Strategy and planning reforms.
They’re calling for bold changes to help create more housing and boost the economy. If the government wants people to earn more, they need to get moving!
