Sep 27, 2024
Insights
It depends on who you ask, and where they live. But the answer most give can be grouped in two buckets — some say it’s another world, others think London’s not that different.
We are data people so let’s attempt to answer the question using data. It’s important to mention up front that in some of the analyses, the surface area of comparison is limited to England and Wales, like when we use census microdata and migration data from 2021. This is because differences exist in census questions, processing, and detailed methodology between Scotland, Northern Ireland, England and Wales, so comparing results is tricky.
Having established that context, what have we found?
London is younger
London is noticeably younger than the rest of England and Wales. While the median age (the age that splits the population in half) in England is 41, and 43 in Wales, the median Londoner is just 35.
This youthful trend is even more striking when you look at the 16 to 44 age group. In London, nearly half the population (46%) falls into this range, compared to only about a third (36%) in the rest of England.
More diverse
Age is just one part of the story. London's diversity is equally striking. While 86% of the population in the rest of England identify as white, in London, this figure drops to just 54%. Even more remarkably, around 41% of London's population was born outside the UK.
London's distinct demographic profile likely results from a combination of factors. Its robust job market attracts young professionals. World-class universities draw a large student population. As a global city, it's a prime destination for international migrants. Its vibrant culture appeals to youth. And this diversity creates a self-reinforcing effect, attracting ever more diverse populations.
This in turn influences a number of outlooks. Consider, for example, attitudes towards international relations or immigration.
Compare the average level of support for human rights or minorities in schools. London has the highest percent of support by a wide margin, 85% and 77% respectively, compared to . This holds true for other topics like religious diversity - 75%, and open UK borders - 79%.
And richer*
London and neighboring South East, home to commuting Londoners, have the highest average hourly pay, and pension income, with men in London earning an average of £25 per hour and women earning just around £20. This is compared to an average hourly rate of £15.8/hr for men, and £13.7/hr for women in Birmingham, and £14.9/hr, £13/hr in Manchester.
London boasts a higher concentration of university graduates and skilled professionals compared to the national average. In 2021, 57% of economically active population in Londoners held a degree or equivalent qualification, compared to 42% in the rest of England and Wales. This concentration is both a result and a cause of London's unique position within the country.
This tracks with data from the 2021 census that shows a higher percent of the London region having high social grades. In London, 29% belong to social grade AB (higher and intermediate managerial, administrative, professional occupations), compared to 23% in the rest of England. This concentration of high-pay jobs reflects London's role as a hub for industries that require advanced education.
While the graduate population has increased across England, job opportunities haven't kept pace outside London. So London offers significantly better prospects for graduates compared to other regions in England. This disparity fuels a "brain drain" to London and the South, where young graduates feel they have a much higher chance of securing high-skilled jobs that have emerged over the past three decades.
London also has a higher percentage of its population being self employed.
But saying that London is rich and other regions are worse off is an oversimplification. Nuances exist. Despite its wealth, London grapples with significant poverty. In 2022/23, 24% of Londoners - approximately 2.2 million people - lived in households experiencing poverty after accounting for housing costs (AHC). This poverty rate is 3 percentage points higher than in the rest of England.
Even more striking is the persistence of this issue. While poverty rates in London have fluctuated between 27% and 30% over the past two decades, the rest of England has seen rates between 20% and 24%. London's poverty rates have consistently exceeded those of the rest of England for at least the past twenty years, highlighting a persistent economic disparity within the capital.
And of these young graduates who move to London in their twenties, many leave as they get older and start to have children.
Migration data shows that people move out of London - to the rest of the country - during their thirties, often taking young children with them (one child aged 0-5 leaves London for every 3.5 people aged 30-45). Admittedly, many often remain within the greater South East area, so they can commute to London for work. High cost of living, pace of life, cost of childcare, are some of the reasons for this migration.
This chart shows net migration in London (2020-2021), only including movement between London and the rest of England and Wales.
In short, London is very different
So as an answer to the original question, how different is London from the rest of the UK? Very different.
Its younger, more diverse population, higher concentration of graduates, and economic dominance create a region that is, in many ways, a world unto itself. This uniqueness presents both opportunities and challenges for businesses, policymakers, and the nation as a whole.
Some implications for businesses:
Talent acquisition: Companies outside London may need to develop strategies to attract and retain skilled graduates, potentially through remote work options or satellite offices. Or perhaps being based outside of London as a business is an advantage. Lower cost of living and a slower pace may be attractive to graduates.
Market segmentation: Businesses should recognize that strategies effective in London may not translate directly to other regions due to demographic and cultural differences.
Differentiation by location: Companies could explore opportunities in other UK regions, potentially benefiting from lower costs while helping to address regional economic imbalances.
Global product testing: London's diverse population makes it an ideal microcosm for testing global products and strategies. Companies can use the city as a launchpad to gauge how their offerings might perform in various international markets.
This is the first of a series of articles spotlighting the differences between London and other UK regions.
Data processing and visualization were largely automated using Point Sigma. Human input focused on uploading data, selecting and refining auto-generated graphs, and interpreting results and writing analysis. Refinements included further age grouping and adding visual aids like map arrows. Learn more about Point Sigma.
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