A comparison of first quarter data from 2021 to 2023 has revealed a 15% in the median hourly pay rate in Scotland, compared to the median annual salary, which declined by 1%.
However, in the same period from 2022 to 2023, Scotland experienced a 6% rise in annual salaries, as well as an 8% hike in hourly pay rates.
That's according to analysis of more than 30,000 job postings across all Scottish regions and business sectors on the HiJOBS website.
This also found that pay growth in the care, construction and energy sectors has been particularly strong each year since 2021, with median hourly pay rates rising 21%, 36% and 13% respectively.
The median hourly pay rate for jobs in care jumped 21% year-on-year (from 2022 to 2023) to £13.90, with the median annual salary up 11% to £27,897.
The hourly pay rate in construction, trades and property leapt 36% year-on-year to £22.27, with annual salaries stepping up 12% to £34,834.
Hourly pay for jobs in energy increased 13% to a median rate of £15.05, with annual salaries up 8% to £32,766.
The data suggests a ‘firefighting’ short-termism came into play by employers as they battled economic volatility, with Scotland’s job market providing better paid short-term opportunities, particularly in hospitality, care and driving vocations.
However, this may have been at the expense of longer-term career roles, with jobs advertised on an annual salary basis seeing stagnation or decline in pay over the same period.
Brexit, too, has played a major role – with a smaller pool of candidates to fill positions, stiff recruitment competition continues to drive up pay rates for jobs advertised on an hourly rate basis.
In some Scottish tourism spots, this has been exacerbated by a lack of affordable housing for potential new employees from other parts of the country.
The divergence in pay trends was also reflected on a regional level:
- In Greater Glasgow, annual salaries fell 19% between the first quarter of 2021 and 2023, while hourly rates increased by 17%.
- In Edinburgh and the Lothians, annual salaries dropped 3% between the first quarter of 2021 and 2023, while hourly rates increased 13%.
- The picture in Aberdeenshire was more positive overall, but maintained a disproportionate boost for hourly pay: hourly rates were up 20%, while annual salaries were up 6%.
Many employers are actively choosing to offer increased flexibility, including part-time hours, to appeal to a wider pool of candidates, attracting students and older people potentially coming out of retirement to top-up their income to cope with the increased cost of living.
Laura Saunders, commercial director and founder of HiJOBS, said: “The difficult economic environment of the past two years has inhibited long-term investment in people, as well as in other parts of businesses and public sector organisations.
“Many employers, like much of the general public, were operating in survival mode; plugging immediate ‘front line’ staffing gaps while holding back on investment in longer-term career positions.
“Jobseekers in Scotland can now take some heart that the data suggests rising pay available across a large range of geographies and sectors, with increasing opportunities for flexible and part-time work.”
Dominic Duffy, office manager at Abbeyfield Ballachulish Care Home, said: “Nurses and carers have long been in demand, and in recent years competition for staff has only increased, with Brexit certainly having an impact.
“Driven by Scottish Government policy, we know that pay in the care sector in Scotland has risen particularly fast, and at Abbeyfield Ballachulish we always offer above minimum requirements for the whole team.”
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