Although almost one million new jobs were created in the United Kingdom over the last four years, wages for those living in urban areas decreased by five percent in the same amount of time. Now, each urban worker earns a wage of approximately £1,300.

The data was revealed in the report Cities Outlook 2016, which investigated the economies of the United Kingdom’s 63 largest cities. From 2010 - 2014, over 980,000 new jobs were created. The research revealed that 29 of the cities that accounted for many of these new jobs qualified as ‘low wage, high welfare’ economies.

This report comes at an interesting time. It was released after the Summer Budget 2015, which calls for higher wages with lower welfare levels.

Human resource experts however explained that 14 British cities are already achieving this high wage low welfare kind of economy, meaning that it is possible. The report suggests that government policy makers could learn from these cities, which include London.

The report also states that cities with higher wages had enjoyed faster job growth when compared to other, low-wage cities. The report goes on to explain that cities should really focus on supporting high-skilled employment in knowledge-intensive sectors, like digital and professional areas, because these jobs help raise average pay. Higher average pay for some could fuel other parts of the economy, like retail and leisure.

The report did prove to have some geographical evidence of wealth distribution as well. There was a true North/South divide, with eight of the top 10 high wage and low welfare cities located in the South East. Nine of the bottom 10 cities were located in the North or Midlands.

The authors of the report are urging the government to increase investment in regional economies and are advising to give more control to cities over local tax revenue, skills, infrastructure and housing.