Welsh workers see salaries fall despite inflation, soaring cost of living and energy prices, report shows

New research from Reed has revealed that despite the increase in interest rates, the cost of living and energy prices, salaries in Wales are not keeping up, with companies advertising lower 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 Wales are no exception, as they lag behind soaring living costs, much like the UK average.

Despite 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 Wales vary between sectors, with some like procurement and supply chain experiencing an increase of 10.7%, but others such as insurance and financial services seeing a decrease (-9.8%).

The fall in average salaries is worrying news, particularly 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.

Matthew White, Reed’s Regional Managing Director for Wales, said: “Wales is seeing a wide variation in salaries between sectors, with a 20% difference in some sectors such as supply chain and financial services. However, the overall decrease in salaries reflects the impact the pandemic has had on Welsh businesses over the past two years, with many slowing down their expansion plans in 2021.

“Despite this there are opportunities for growth in the country, particularly in the supply chain sector, as businesses look to solve the issues caused by the pandemic and Brexit.

“Businesses in Wales looking to recruit are facing unique challenges in a candidate-driven market, particularly as they often draw from the same talent pool as Bristol. Companies will need to look at their entire benefits package to attract the right people and consider flexible and remote working options to widen the pool even further geographically.”

• Advertised salaries in Wales have fallen 3.25%, compared to a UK average increase of 0.4%
• Salaries advertised lag 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 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 Wales are not keeping up, with companies advertising lower 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 Wales are no exception, as they lag behind soaring living costs, much like the UK average.

Despite 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 Wales vary between sectors, with some like procurement and supply chain experiencing an increase of 10.7%, but others such as insurance and financial services seeing a decrease (-9.8%).

The fall in average salaries is worrying news, particularly 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.

Matthew White, Reed’s Regional Managing Director for Wales, said: “Wales is seeing a wide variation in salaries between sectors, with a 20% difference in some sectors such as supply chain and financial services. However, the overall decrease in salaries reflects the impact the pandemic has had on Welsh businesses over the past two years, with many slowing down their expansion plans in 2021.

“Despite this there are opportunities for growth in the country, particularly in the supply chain sector, as businesses look to solve the issues caused by the pandemic and Brexit.

“Businesses in Wales looking to recruit are facing unique challenges in a candidate-driven market, particularly as they often draw from the same talent pool as Bristol. Companies will need to look at their entire benefits package to attract the right people and consider flexible and remote working options to widen the pool even further geographically.”