Manchester and the wider city region have reinforced their status as one of the UK’s fastest-growing and most productive urban economies, according to the latest Big Cities Outlook from Centre for Cities.
The report positions Manchester as a standout national success story, highlighting consistent economic expansion both before and after the financial crisis. Over the past decade, job growth in the city has risen by 19.7%, significantly exceeding the UK average of 13.9%. This growth has been underpinned by a robust pipeline of high-quality office developments, helping attract new businesses and support scaling firms – particularly within the knowledge economy.
Knowledge economy drives growth
Manchester’s knowledge-intensive business services sector continues to expand rapidly. The city is now home to around 244,000 KIBS jobs, second only to London among UK cities. These roles account for 17.6% of all employment locally, which is well above the national average of 14.5%.
This sustained growth is being fuelled by strong performance in sectors such as digital, fintech, and research, further cementing Manchester’s international reputation for innovation and talent.
Inclusive growth strategy shows early impact
The city’s Investing in Success economic strategy, launched in December 2023, has been central to this progress. Focused on inclusive growth, the strategy aims to ensure economic expansion translates into tangible benefits for residents, including job creation and poverty reduction.
Since its introduction, Manchester’s employment rate has risen to over 75% - a 6.4% increase since 2023 – demonstrating early momentum in delivering on its ambitions.
Business and housing growth accelerate
Manchester’s business base is also thriving. The number of businesses in the city has increased by 30% since 2015, with approximately 900 new firms added in the 2024/25 period alone.
However, growth has intensified pressure on housing supply, a challenge that has been echoed in the Centre for Cities report, which calls for higher density development and improved transport-linked affordability.
In response, the council has committed to delivering at least 36,000 new homes by 2032, including 10,000 affordable properties. Progress is already underway, with nearly 1,000 affordable homes completed in the past year, half of which are set at social housing rates.
Transport investment key to levelling up
Transport infrastructure continues to play a crucial role in supporting economic inclusion. Plans for a new Metrolink stop at Sandhills – part of the Victoria North regeneration programme – highlight efforts to connect communities with employment opportunities and reduce deprivation.
Cllr Gavin White, Manchester City Council’s Executive Member for Housing and Regeneration, said:
“This report outlines the importance of Manchester’s economic growth to the success of the city region and indeed the wider north of England – and highlights that big cities play a crucial role in helping the UK thrive.
“Manchester has seen significant population growth in recent years, a testament to a global reputation and strong expansion across key sectors that have helped create tens of thousands of high-quality jobs in the last decade – helping to attract and retain a pool of world class talent.
“With this success comes high demand which is why we are helping to drive a strong supply of quality office space to support businesses to thrive and attract new global names to Manchester. While also creating a strong and diverse housing sector – including record numbers of social, Council and genuinely affordable homes being built in every part of our city.
“But we also know that far too many households still face high levels of deprivation and it’s vital that we continue to convert economic growth into better living standards for our residents. It’s our vision to make sure that we can create pathways to great jobs, alongside investment in our communities and transport link, that makes sure that everyone living in Manchester has the opportunity to share in the city’s success.”
Image credit: iStock
