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, entitled 'Beyond the City', was commissioned by the International Festival for Business (IFB 2016) and forecasts employment growth of 3.8 per cent in Manchester and 2.6 per cent in Liverpool between 2015 and 2020 – compared with 1.7 per cent for Paris, 1 per cent for Berlin and -0.7 per cent for Tokyo.
The study analysed the performance of the UK economy and its local economies beyond London with a focus on the manufacturing, energy and environment, professional services and digital & creative sectors.
'Beyond the City' was launched today at the London Stock Exchange to mark 'one year out' from the second IFB 2016 to be held in Liverpool between 13 June and 1 July 2016, an event that brings together thousands of businesses for three weeks of networking and deal-making. Insider is proud to be acting as a media partner for the event.
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 per cent) in the UK, followed by Salford which created 3,548.
The study also revealed that 530,000 new knowledge economy jobs are forecast be created in the UK over the next five years: 330,000 in professional services and 200,000 in digital and creative.
In addition the UK's national productivity is expected to rise by 10.7 per cent in total driving disposable income up 12.4 per cent 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, chairman of the IFB, 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."
The IFB has also announced HSBC will become a main partner and DLA Piper, Heathrow, PwC, Siemens and Virgin Trains will become festival supporters. Jude Kelly, artistic director of the Southbank Centre in London, will be creative director for 2016.
Iwan Griffiths, PwC's North West chairman, said: "Employment growth is a barometer of economic health. This report therefore reinforces that business confidence and investment across the UK regions will continue to recover and thrive over the next five years.
"The North West has the largest financial services sector of the UK regions outside of London and so it is no surprise that the expected growth will be led by this sector.
"With nearly 14,000 jobs predicted to be created by 2020, the benefits will not only accrue to the region but significantly contribute to the wider UK economy."
SOURCE: INSIDER
