Manchester’s ‘knowledge economy’ grows

MORE of Greater Manchester’s population is employed in the knowledge-based industries of financial and business services than ever before, according to a new report.

The study, Understanding Labour Markets, Skills and Talent, found a 120% increase in employment in this area since 1981. There has also been a 49% increase in the number of people employed in information, communication and technology.

While employment in these sectors has increased, jobs in manufacturing have dropped by 54%.

The findings are part of Manchester Independent Economic Review (MIER), funded by the Northwest Development Agency and the Association of Greater Manchester Authorities, and led by Sir Tom McKillop, former chairman of the Royal Bank of Scotland.

The report found the Manchester city-region regularly out-performed its competitor cities, offering high-skilled jobs; retaining and providing the talent required to fill those jobs and retaining graduates from local universities.

But it conceded that all provincial city regions compare badly to London when it comes to attracting workers. The report said Manchester loses a “substantial proportion of its high skilled and mobile young workers” to London and the south east.

It also found that Manchester’s strong performance in terms of high-skilled jobs and people is not matched by its “comparatively modest” productivity, which it puts down to a “substantial” gap in productivity between southern and northern Greater Manchester and the high number of people lacking qualifications within the workforce.

Barbara Spicer, chief executive of Salford City Council, said: “What’s important now is to ensure there is a skills base in place to fuel success in areas that are yet to see such benefit, so that the full productivity and potential of the ‘new-look’ city-region can be realised.

“This can be most easily addressed by a long-term partnership between public, private, educational and community stakeholders.”

The report said ICT growth has centred on locations along the M56 and M62, with Warrington having seen significant growth in employment over the period 

The business services sector has seen strong development in Manchester, Salford Quays and Trafford, along with Warrington and Stockport, while financial services employment has expanded most strongly in Salford, Trafford and Vale Royal.