Moray ranked in top ten worst-paid areas in UK
New analysis has revealed that Moray was the worst-paid area in the country last year - with the average pay dropping by £1400.
Figures from the Office for National Statistics (ONS) show that median yearly pay was £24,832 in 2024 - around £5000 lower than both Highland and Aberdeenshire.
Out of the 31 Scottish council areas for which figures are available, Moray had the lowest annual and hourly pay - along with the second-lowest weekly pay.
The area also ranks within the bottom ten for annual pay, out of 339 UK local authorities.
Edinburgh City, meanwhile, had Scotland’s highest annual pay at £36,312 a year, with Aberdeen ranked second with £35,175.
The data also shows that Moray’s average pay dropped by 5.4 per cent in 2024 compared to the year before.
Why does Moray have such low wages?
Sarah Medcraf, CEO of Moray Chamber of Commerce, said the “persistently low wages” were because the area is “heavily reliant” on lower-paid industries with tight profit margins like manufacturing and tourism.
Moray had more manufacturing workers, on average, than anywhere in Scotland.
The area’s figure of 16.7 per cent is nearly two-and-a-half times the national average of seven per cent.
With 6000 employees in 2023, the sector was tied with health and social care as Moray’s biggest.
Along with the Speyside whisky region, Moray is also home to manufacturing giants Walker’s Shortbread, Baxters and Associated Seafoods.
Ms Medcraf said that it was “disheartening” to see the area at the bottom of Scotland’s pay rankings.
“Of course it is disheartening to see that despite efforts, Moray continues to have the lowest annual gross pay among Scottish local authorities,” she added.
“The fact that annual pay fell by more than £1400 is particularly concerning.
“This decline not only affects individual livelihoods but also has broader implications for the region's economic resilience and ability to attract and retain talent.
“There’s less disposable income, so people must prioritise where their money is spent.
“This, linked with the cost-of-living crisis and inflation, has reduced the money left in people’s pockets to spend and invest locally, which also contributes to tighter margins on products and services and then the circle continues.”
Fewer high-skilled jobs, more low-skilled jobs
The ONS figures also revealed that Moray had the second-lowest number of the highest-skilled jobs, on average, with the 37 per cent above only Dumfries and Galloway with 35.4 per cent.
And, per person, Moray had the least “professional” jobs, including lawyers, doctors and teachers, of any part of Scotland.
The area also had the second-highest rate of people working in the lowest-skilled category of jobs, with the area’s 22 per cent second only to the Highlands at 23.5 per cent.
Figures for Orkney, Shetland and the Western Isles were not included due to the small sample size.
Councillor Marc Macrae (Fochabers Lhanbryde, Conservative) is the chairperson of Moray Council’s Economic Development and Infrastructure Services Committee.
He argued that Moray’s low wages were due to the number of jobs in sectors like manufacturing and tourism.
Whilst “vital” for the local area, the industries typically offer lower-paid or part-time roles which reduces the median figure.
Are things getting better?
In the decade between 2010 and 2024, annual pay in Moray grew by 39 per cent.
However, this was the fourth-lowest rise out of any area in Scotland over the same time period.
Last year saw pay average yearly pay drop by more than £1400.
Cllr Macrae said that work to improve the situation had been underway since 2016.
He singled out the Moray Growth Deal (MGD), including its Business Enterprise Hub and Early Years STEM projects, as part of Moray Council’s “clear strategy” to create better-paid jobs.
“Momentum is building”
The councillor also praised investment by Highlands and Islands Enterprise which would support “95 full-time jobs with an average salary of £34,882.
“We’re focused on long-term solutions,” Cllr Macrae said.
“The full deal was signed in December 2021, and momentum is building: we initially had two projects in delivery, and this year, an additional five projects will enter that stage, bringing the total to seven.
“As these projects advance, the benefits and impacts are expected to become increasingly visible as we progress toward the conclusion of the MGD’s 10-year delivery plan in 2031.
“While change will take time, there is a clear strategy in place, and as a council we’re committed to lifting wage levels across Moray in a sustainable and inclusive way.”
“Requires effort from both governments and Moray Council”
Ms Medcraf said this was down to “continued dominance of low-wage sectors” and limited growth in higher-paid industries in Moray.
“Automation and other solutions which drive wages up have been implemented in some areas, but this improvement is costly and takes time,” she added.
“Whilst there have been efforts to stimulate economic growth, such as the Moray Growth Deal, which aims to invest over £100 million in strategic projects, the impact on wage levels has been gradual.
“We also have challenges like an ageing population and a high number of economically inactive members of the population.”
The CEO argued that governments and Moray Council should provide more support for small and medium-sized businesses and provide better access to education and training to improve pay.
She said improving transport and digital infrastructure, making the most of renewable energy and “community wealth building” could also contribute to growing Moray’s average pay packet.
“Focusing on these areas requires effort from both governments and Moray Council and we as partners can all work towards creating a more equitable and prosperous economy,” Ms Medcraf added.