Manchester's economy has surged ahead of the rest of the country, growing by more than 34% between 2013 and 2023, according to new research from the London-based think tank Centre for Cities. This growth outpaces other top performers such as Bristol, Leeds, and Newcastle, and is nearly double the UK average of 18.4%.
Economic Growth and Job Creation
The data, measured by total gross value added (GVA)—the value of goods and services produced in the city—shows that London's economy grew by nearly 19% over the same period. Manchester and the wider city region also recorded a 19.7% increase in job growth, well above the UK average of 13.9%.
Manchester City Council attributes this success to its employment plan, which has boosted the city's employment rate to over 75%, a 6.4% increase since July 2023. The number of businesses in Manchester has risen by 30% since 2015, with around 900 new businesses added in 2024/25 alone.
Housing Challenges and Density Gaps
Despite the economic boom, the Centre for Cities report highlights significant housing challenges. Manchester, Birmingham, and Leeds have the largest 'density gaps' compared to their international peers, with estimated shortfalls of 231,000, 202,000, and 196,000 homes in their urban cores, respectively. Bristol faces a smaller gap of around 18,800 homes but still faces constraints on expanding its urban form. The report states: 'Closing these gaps would require a significant increase in housebuilding, especially in the largest of the big cities.'
Future Ambitions and Political Implications
The growth comes amid major announcements by Greater Manchester Mayor Andy Burnham, who has pledged a 'No 10 in the North' if he becomes Prime Minister, potentially based in Manchester. The Centre for Cities report noted: 'There are encouraging signs, with places such as Leeds and Manchester seeing strong productivity growth in recent years, adding to a sense of growing momentum around their role in raising national living standards.'
Councillor Gavin White, Manchester's housing and regeneration lead, commented: '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.'
