City has fastest growing education sector – new study

Manchester is home to the fastest growing education sector in the UK, according to a new report.

The UK Powerhouse study is produced by Irwin Mitchell and the Centre for Economics and Business Research (Cebr) and provides an estimate of GVA growth and job creation within 45 of the UK’s largest cities 12 months ahead of the Government’s official figures.

Published this month, the report revealed that Manchester’s overall GVA grew by 1.4% in Q3 2017, while its rate of employment also rose slightly by 0.6% across the same period. In contrast, Greater Manchester’s GVA was recorded at 1.6%, while its employment rate was 0.8%.

While such results were relatively modest compared to other areas of the UK, the report also examined the impact that education has on city economies and revealed that the area is one where Manchester is thriving.

According to the latest data, the city was found to have the highest GVA growth for education, with the sector in the city growing by 20 per cent between 2012 and 2015. Manchester was also revealed to be the fourth biggest education employer in the UK, with 41,040 people in the city working in the sector.

According to the study, the findings could be attributed to the £1bn investment plan to expand the University of Manchester into a world-class campus by 2021. The university itself is thought to employ more than 12,000 staff.

Roy Beckett, regional managing partner at Irwin Mitchell in Manchester, said: “While general growth in employment and Manchester’s economy in recent months has been modest, this new report shows how it has an education sector which is absolutely thriving.

“With all of the plans in place to develop this area in the coming years, it is likely to be a sector which is on the rise for many years to come.”

The report notes the education sector makes a major contribution to economic growth within many areas surrounding universities and also offers recommendations on how it can continue to do so. These include:

· Engaging in the work of Local Enterprise partnerships, particularly in support for innovation
· Ensuring cities with a strong outflow of graduate age young workers have policies for retaining talent, with the Government also providing incentives for graduate recruiters to hire more in those areas
· Encouraging cities to improving infrastructure to optimise the movement of workers
· Introducing large-scale affordable housing projects to appeal to graduates.