Liverpool and Manchester driving Northern Powerhouse
Liverpool and Manchester’s job creation looks set to outpace top international cities such as Berlin, Tokyo and Paris over the next five years according to a forecast from economists at Oxford Economics.
The report, ‘Beyond the City’, was commissioned by the International Festival for Business (IFB 2016) and forecasts employment growth of 3.8% in Manchester and 2.6% in Liverpool between 2015-2020 – compared to 1.7% for Paris, 1% for Berlin and -0.7% for Tokyo.
The report was launched today at London Stock Exchange to mark ‘one year out’ from the second UK International Festival for Business to be held in Liverpool between 13 June and 01 July 2016, an event that brings together thousands of businesses for three weeks of networking and deal-making.
The study analysed the performance of the UK economy and its local economies beyond London with a focus on the manufacturing, energy & environment, professional services and digital & creative sectors.
Between 2010 and 2015, Manchester created almost 14,000 jobs in the professional services while Liverpool created 7,547 jobs in the digital and creative sectors between those same years – the largest job growth (+55%) in the UK, followed by Salford which created 3,548.
The study also revealed:
• Manchester will create 7,800 new jobs in the professional services sector over the next five years, a jump of 14% which makes it one of the top ten fastest growing places for jobs in law, finance, management consultancy and advertising outside the capital.
• Digital and creative will continue to be an employment hotspot for Liverpool, with 2,000 more people projected to be employed in this sector from 2015 to 2020.
• Trafford will grow even faster – at 15% – and create 3,870 new jobs in the professional services sector between 2015 and 2020.
The study also found that the UK’s national productivity is expected to rise by 10.7% in total driving disposable income up 12.4% in total over the next five years.
Despite this, the rate of employment growth will reduce by 50 per cent (to 1.3 million) relative to the last five years, when 2.5 million jobs were created.
Max Steinberg, Chair of the International Festival for Business, said: “This study indicates that the renaissance of the North is real, creating employment, particularly in the ‘knowledge sector’.
“What’s particularly impressive is that Manchester and Liverpool are expected to outperform world class cities like Berlin and Paris for employment growth over the next five years.
“Too few people hear about the growing dynamism of the North and it’s time people gave it more recognition. At next year’s International Festival for Business we will be proudly telling the world – and the rest of the UK – about the opportunities on offer to businesses in the North.”