The South West of England has overtaken London to become the best place to work in the UK, according to a newly released employment index. The region ranked first for job satisfaction and second for financial security, cementing its position as the top destination for fulfilling and financially rewarding employment.
The Employment Index, compiled by savings and retirement group Phoenix Insights, evaluates UK regions across four key categories: job satisfaction, confidence in long-term employment, financial security and economic activity. Based on data from 6,000 UK workers and Office for National Statistics (ONS) data, the index highlights notable regional differences in employment experiences.
While London led in financial security and economic activity, the capital fell short in confidence about long-term employment, dropping to second place overall. The South West’s strong performance in job satisfaction and financial security, alongside solid rankings in other categories, helped it secure the top spot.
Confidence in Long-Term Employment
Scotland emerged as the leader in long-term employment confidence, with 57% of workers optimistic about staying employed until age 70 — the highest of any region. By contrast, only 43% of Londoners shared this confidence, the lowest score nationwide. Scotland also ranked highest for confidence about working until retirement, with 54% of respondents feeling positive.
Phoenix Insights called for regional solutions to address disparities in employment opportunities across the UK, with director Catherine Foot saying it was important to improve local support systems: “Good quality, satisfying jobs matter to people of all ages, and better employment opportunities across the country are vital to drive the economic growth our country sorely needs,” she said.
To do this we need better provision and access to public employment support services.”
Foot said there was a need for greater devolution of powers to create region-specific employment initiatives.
“Crucially, we must also ensure local areas have greater powers to design and target the employment and skills support that people need, working closely with local employers, health and housing providers. Otherwise, we risk using top-down solutions that don’t meet the range of needs across the UK.”
Regional Rankings
The top-performing regions according to the Employment Index were:
- South West
- Greater London
- North West
- East Midlands
- Scotland
Yorkshire and The Humber, Northern Ireland and the South East ranked at the bottom, reflecting challenges in job satisfaction and confidence in long-term employment.
Financial Security and Job Satisfaction
London maintained its lead in financial security, with the South West ranking second. Meanwhile, the North East tied with London in satisfaction with current financial situations, with 31% of respondents saying they were living comfortably. But the North East lagged behind in average weekly pay (£677.83 compared to London’s £998.45).
The South West also ranked first for job satisfaction, with 78% of workers satisfied with job flexibility. London, while second overall, scored highest in opportunities for career progression, with 62% of respondents satisfied in this area.
Boosting Pensions Through Employment
Mike Ambery, retirement savings director at Standard Life, which is part of Phoenix Group, underscored the connection between strong employment opportunities and tackling the UK’s pension savings shortfall.
“Making sure people across the UK have access to good, fulfilling work that they can remain in as long as they need, or want, is vital to tackling our widespread pension under-saving crisis,” he said.
“Government and businesses must ensure that action to keep people in work is targeted at a regional and local level, to help boost people’s ability to save wherever they live in the UK.”
