Reading has been ranked among the strongest economies in the UK.
Cities Monitor 2025 published by the Centre for Cities, reveals the town’s high-tech occupiers are paying the fourth highest average wages in the UK at £44,586. The figure creates an average disposable income of £25,736, the third highest in the UK.
The report finds that the export base of a city is a key determinant of high wages. It looks at three key factors:
Export driven economic growth – Reading ranks second to London for the size of its exporting base.
The number of cutting-edge tech businesses in a location – Reading has the sixth highest new economy firms, (per 10,000 people of working age population).
Adaptation away from manufacturing and into service sectors. Over the last 50 years, the growth in services has been key to high wages and export success. The report states: “Specialisation in computer programming has served Reading well, helping to create a high-skill, high-wage economy.”
Nigel Horton-Baker, chief executive of REDA, said: “The Cities Monitor 2025 report showcases the wealth of reasons why investment, innovation and talent beat a path to our city. The investment in central Reading and unmatched transport connectivity has helped underpin the historic tech strengths of the Reading economy but we are now seeing really encouraging signs of the economy further diversifying in areas such as film production and pharma.
“A diverse modern economy not reliant on one major sector or employer will sustain and grow Reading’s economy into the future, well beyond Reading’s 2050 Vision, and with the right local approach, bring benefits to all in the Greater Reading area.
“Reading’s skilled workforce is another reason why businesses relocate here. Just ten years ago, 42 per cent of Reading residents were highly qualified. Since then, the Reading population has grown by 12.6 per cent and now, nearly 62 per cent of Reading residents are qualified to RQF4 level or above.
“For every resident with no qualifications (just two per cent), Reading has 27 residents who are highly qualified. Reading businesses attract talented people, who in turn encourage more businesses to locate here to grow the economy.
“Reading’s workforce feel the benefits of this in high wages, earning as much in eight months as other parts of the UK do in a full year.”
The Centre for Cities Cities Monitor 2025 can be downloaded here.
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