The South West is the best place in the UK to work in according to a new ‘Employment Index’ which ranks UK regions in terms of workers’ experiences of fulfilling, financially rewarding, long-term employment. Greater London is ranked in second place, with the North West in third.
The Employment Index, created by Phoenix Group, shines a light on individuals’ long-term prospects, as extending working lives can be crucial in enabling people to retire when they want to and on the income they want.
With 17 million people already not saving enough for retirement, good quality, sustainable employment is vital to closing the pension savings gap, as well as improving economic growth and productivity in the UK.
The Index is based on a combination of 13 metrics from research among 6,000 working UK adults and Office for National Statistics (ONS) data. It ranks UK regions by four groups: job satisfaction, confidence in ability to be in long-term employment, financial security and economic activity levels.
BRISTOL, BATH AND EXETER
The number one ranking for the South West of England, home to cities such as Bristol, Bath and Exeter, was achieved through its top spot for job satisfaction, as well as a high score for financial security (2nd) and high-to-mid scores for employment confidence (4th) and economic activity levels (4th).
Although London ranked top for financial security and economic activity, and scored joint third for job satisfaction, it ranked lower for people’s confidence in long-term employment, reducing its overall ranking to second place.
Regions across several parts of the UK score highly on the index, and across the different employment categories, demonstrating the range of employment strengths and weaknesses across each region, rather than a clear-cut geographic divide.
NORTH-SOUTH DIVIDE
There is some evidence of a North-South divide within levels of economic activity, however, with London ranking first, followed by the South East, while Yorkshire, Wales and the North East rank lowest.
Catherine Foot, Director of Phoenix Insights, Phoenix Group’s longevity think tank, says: “Good quality, satisfying jobs matter to people of all ages, and better employment opportunities across the country are vital to drive the economic growth our country sorely needs. To do this we need better provision and access to public employment support services.
“Crucially, we must also ensure local areas have greater powers to design and target the employment and skills support that people need, working closely with local employers, health and housing providers. Otherwise, we risk using top-down solutions that don’t meet the range of needs across the UK”.
Scots most confident about long-term employment – while Londoners lack optimism
Although top for several employment categories, London ranked only eighth for levels of confidence in long-term employment.
Scotland ranks highest among all UK regions in this area, and also scores well for confidence in ability to stay in work until retirement (54%).
Nine in 10 (89%) Scots were confident they could remain in work until age 60, and well over half (57%) were also confident they could continue in their job until they were 70, the highest for any region across each metric.
By contrast, only 43% of Londoners were confident that they could stay in work until age 70 – the lowest among all regions – while 74% believe they could remain in work until age 60.
London first for financial security
London ranks top across all three metrics within the financial security category (satisfaction with current financial situation, pay satisfaction and average pay). The South West ranks second, with the North West and North East following in third and fourth, undermining the perception of a North-South divide.
There is some internal variation within the financial security metrics; for example, the North East ranks joint first with London in terms of current financial situation, with 31% saying they were living comfortably on their present income, but ranks only eleventh for average weekly pay (£677.83, compared to £998.45 in London, which ranks first). This may reflect the impact of lower living costs in certain regions, even when combined with lower pay.
Job satisfaction
The South West tops the rankings for job satisfaction, with the North West a close second. South West respondents were most likely to report satisfaction with their opportunities for job flexibility (78%), closely followed by the North-West (76%). Within the job satisfaction category, London scored the highest on opportunities for career progression, with three in five (62%) reporting they were satisfied.
LASTING CHANGE
Foot adds: “As our working lives grow ever longer, we must ensure that everyone can secure good, paid employment, which can adapt to their changing needs – regardless of where they live.
“As this new Index shows, different employment backdrops across the country bring their own benefits and challenges for working people of all ages. Measures to improve employment throughout the UK must take these different environments into account to deliver lasting change.”
Mike Ambery, Retirement Savings Director at Standard Life, part of Phoenix Group, says: “Making sure people across the UK have access to good, fulfilling work that they can remain in as long as they need, or want, is vital to tackling our widespread pension under-saving crisis, helping people earn and save for longer.
“Government and businesses must ensure that action to keep people in work is targeted at a regional and local level, to help boost people’s ability to save wherever they live in the UK.”
