Why a job-hopper in London is better positioned right now than most other major cities

The UK, and particularly London, stands out in the current global labour market as one of the best places for job-hoppers to boost their earnings and recover purchasing power lost to post-pandemic inflation.

This is according to a new analysis from Indeed Hiring Lab, which shows that advertised wage growth in the UK has largely caught up with the cumulative inflation shock since January 2021, placing real posted wages back around pre-shock levels – similar to the US but ahead of many other major economies.

By comparison, countries like Canada and Japan sit at roughly 97.5 on a real wage index, while the euro area averages 96.2, with Italy lagging severely at 89.9.

The US edges slightly ahead at 101, but the UK’s recovery, combined with its labour market dynamics, gives job-switchers a unique edge right now.

Why the UK rewards switching jobs more

The key lies in wage flexibility. This is how quickly and substantially advertised pay in job postings adjusts to market conditions.

The Hiring Lab’s examination of Indeed job data across eight major economies shows the UK features relatively frequent wage changes and a broad distribution of adjustment sizes, meaning big jumps for in-demand roles alongside smaller tweaks.

This responsiveness allows advertised salaries to reflect current labour demand swiftly. In tighter or more flexible markets like the UK’s – especially in high-cost, competitive hubs like London – workers who switch jobs can capture those updated, higher rates far more effectively than in stickier systems.

For example:

• In the Netherlands, real wages are near full recovery at 99.7, with wage growth outpacing inflation by 2.0 percentage points as of January 2026.
• Germany (+1.4 points) and the UK (+1.2 points) also show posted wage growth exceeding inflation, even as nominal growth slows across the board.
• But in Japan or parts of the euro area, slower and smaller adjustments make it harder for switchers to close gaps quickly.

UK posted wage growth slowed from 6% year-on-year in early 2025 to 4.2% by January 2026, still robust compared to the US (down to 2.2%) or the euro area (2.3%), and continues to outpace inflation despite the UK facing relatively high price pressures historically.

A cooling but opportunistic market

While overall hiring demand in the UK has cooled, this environment favours strategic movers.

Employers in London’s competitive sectors – tech, finance, professional services – often post higher salaries to attract talent amid skills shortages or retention challenges.

Switching lets workers reset at market rates that have adjusted upward more nimbly than in rigid markets.

In slower-adjusting economies, staying put might mean waiting longer for internal raises to catch up, while hopping yields smaller or delayed gains.

The report highlights that as global wage growth decelerates, closing remaining inflation gaps becomes tougher, making flexible markets like the UK’s a better bet for proactive career moves.

For workers in London eyeing a change, the data suggests now could be an advantageous time. Advertised pay has recovered purchasing power, recent growth still beats inflation, and the market’s wage-setting mechanics reward those willing to shop around.

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