Manchester has strengthened its position as one of the UK’s best-performing regional economies after recording job growth well above the national average, according to a new report from the Centre for Cities.
The think tank’s latest Big Cities Outlook identifies Manchester as one of Britain’s standout success stories for economic growth and productivity, with the city consistently outperforming many of its rivals both before and after the global financial crisis.
Over the past decade, employment in Manchester has grown by 19.7%, comfortably ahead of the UK average of 13.9%, driven by sustained investment in commercial developments and the expansion of high-value industries.
The city is now home to around 244,000 knowledge-intensive business services (KIBS) jobs, making it the UK’s second-largest hub for sectors such as digital technology, fintech and research after London. These roles now account for 17.6% of all employment in Manchester, compared with a national average of 14.5%.
The report also highlights the city’s thriving business community, with the number of registered businesses rising by 30% since 2015. Around 900 new businesses were established during 2024/25 alone, reflecting continued investor confidence.
Manchester City Council says its 2023 Investing in Success economic strategy has helped boost employment, with the city’s employment rate rising above 75% since its launch. The strategy focuses on creating quality jobs while ensuring economic growth benefits local communities.
Despite the positive outlook, the report warns that housing remains one of the biggest challenges facing growing cities. It calls for greater housing density and improved transport links to support continued economic expansion.
Manchester is responding through plans to build at least 36,000 new homes by 2032, including 10,000 affordable properties. The council says the past year saw a record number of affordable and social homes completed, with almost 1,000 delivered, helping ease pressure on waiting lists.
Investment in transport infrastructure is also seen as critical to sustaining growth. Projects such as the proposed new Metrolink stop at Sandhills, serving the wider Victoria North regeneration programme, are expected to improve access to employment opportunities while supporting further development.
Gavin White said the findings reinforced Manchester’s role as an economic engine for both the North and the wider UK.
He said continued investment in high-quality office space, housing and transport would help attract global businesses and skilled workers, while stressing that the city’s long-term ambition remains ensuring economic success translates into higher living standards and greater opportunities for local residents.
