People living in the Scottish Borders are the lowest annual earners in Scotland according to the latest Office for National Statistics (ONS) report, while Dumfries and Galloway workers have the lowest weekly wage.
Economist Tony Mackay cast his eye over the most recent stats for annual earnings and weekly salaries for every local authority area in the UK, which are taken from their Annual Survey of Hours and Earnings (ASHE).
”The Scottish Borders statistics are very disappointing but not surprising.
Tony MackayEconomist
“It shows average annual earnings are £30,143, which is 14.3% below the Scottish average of £35,158, and gives it a ranking of 31st of the 32 local areas.
“The ONS Statistics do not give an annual earnings’ estimate for Inverclyde. However, the area’s weekly age is estimated at £638. Multiplying that by 52 weeks would give an annual earnings’ estimate of £33,176. On that assumption Inverclyde would rank 22nd of the 32 areas – and leave the Scottish Borders in 32nd spot.
“The Shetland Islands top both tables. Annual earnings there in 2023 are estimated at £44,052, which is +25.3% higher than the Scottish average and 26.0% higher than the UK average.
“I am very surprised that Shetland tops the tables. I am very familiar with the Shetland economy and have undertaken many studies there. The Office for National Statistics (ONS) used small sample sizes in Shetland and other areas when making their estimates and I believe that those may have resulted in some misleading results.
“Shetland did have a very prosperous economy at the height of the North Sea oil and gas boom, but that industry has contracted substantially in recent years, in both Shetland and elsewhere in Scotland. Other local industries such as fishing have also had difficult times recently. Therefore, I do not believe that the Shetland Islands now have the highest annual earnings in Scotland.
“Ten of the 32 areas have average earnings above the Scottish average. All of those are in the Central Belt, with the exception of Shetland, Aberdeen, Orkney and Moray, with average annual earnings in Glasgow in 2023 estimated at £37,433.”
The weekly stats show the Borders slightly up the rankings, but Dumfries and Galloway in bottom spot, which relates to small differences in the numbers of weeks worked during 2023, but it is not good news for the south of Scotland as a whole.
“The Borders shows a weekly wage average of £652, which is 9.4% below the national average of £720, giving a ranking of 23rd nationally,” added Tony. “Bottom of this table is Dumfries and Galloway, with an average weekly wage of just £581, which is 19.3% below the average.
“Scotland, nationally, is still better than in England. Average annual earnings in Scotland in 2023 are estimated at £35,518 , which is 5.9% higher than the UK average of £34,963 (the England average is £35,106).”
