Salaries not keeping up with inflation and cost of living - survey

Salary increases in the engineering and manufacturing sector are falling behind the national average, a survey by recruitment company Reed has found.

Reed’s analysis shows an average advertised salary growth of 3.3
Reed’s analysis shows an average advertised salary growth of 3.3 - AdobeStock

Some roles – such as engineering and technical directors and quality inspectors – have seen  increases of 11 per cent and 8.6 per cent respectively, but Reed’s analysis shows an average advertised salary growth of 3.3 per cent compared to the average national salary increase of six per cent

Salaries in engineering and manufacturing are still substantially more than the national average, with engineering and manufacturing roles paying an average of £50,800, compared to the UK-wide equivalent of £38,900. 

CLICK HERE TO READ THE ENGINEER’S 2024 SALARY SURVEY

Despite this, nearly a quarter (22 per cent) of the industry’s workers are still unhappy with their salaries, according to Reed’s survey. And 60 per cent of those who are unhappy with their salary say it is because they do not feel that it has risen in line with cost of living.

As part of Reed’s annual salary guides, it analysed over 21 million job adverts and asked 5,000 UK workers a range of questions on their salary and benefits – both current and expected.

In a statement, Kimberly Hunsdon, an engineering and manufacturing recruitment expert at Reed, said: “The UK has been trailing behind in recent years when it comes to our engineering and manufacturing offering. A poor reputation in the hiring process can deter potential talent in a closely-knit sector like manufacturing, where word of mouth and professional networks are influential. We’re actively trying to attract workers into the sector, but with salaries lagging behind the UK average, there’s a very real threat that we’ll fall even further behind. Even with some salaries increasing, largely, they still fall short of inflation and the increasing cost of living.

“With more than two thirds [68 per cent] of engineering and manufacturing professionals open to new job opportunities, the sector needs to look at how best to incentivise and reward its workers. Our survey showed that alongside salary increases, staff would feel more valued if employers offered additional benefits [26 per cent], more recognition for their achievements [28 per cent] and more flexible working hours [23 per cent].”

The Reed Engineering and Manufacturing 2025 Salary Guide can be found at https://www.reed.com/tools/engineering-and-manufacturing-salary-guide-2025

Is your salary keeping up with inflation and the cost of living? Let us know in the comments below.