Scotland new pay hotspot

0 Comments | Sunday Herald, The, Sep 26, 2004 | by Ken Symon

Scotland is one of the new salary hotspots along with London and Wales, according to research to be published today.

The study from the Hay Group says that pay levels in the three regions have risen by at least 2% more than the national average during the last five years.

Meanwhile, employees in other parts of the southeast, east Midlands and East Anglia have been left out in the cold as pay there fell behind the national average .

Hay group analysed pay trends by location from 1999 to 2004 to create a new "pay barometer". Ben Frost, a Hay Group consultant, said: "Our research shows that for the first time this decade, we're seeing salaries in the southeast cool down as growth lags behind the national average.

"Even though Central London continues to race ahead in pay terms, the southeast is a cold spot due to the increasing dominance of the capital, which acts as a magnet by offering the highest salaries and numbers of jobs."

Frost added: "In Scotland and Wales salary growth is outstripping the national average, which means pay decision makers must stay abreast of salary trends in these increasingly competitive markets."

The suggestion that Scotland is experiencing strong pay growth follows a Lloyds TSB Scotland Business Monitor survey, which said that Scottish economic growth is close to a seven-year high.