The income dilemma at the heart of Manchester’s growth story
Greater Manchester’s growth is uneven, with the city centre thriving while outer boroughs lag behind in income and productivity. Explore the full report for insights.
Greater Manchester's recent economic growth has not been matched by corresponding increases in earnings or income, particularly in the outer boroughs. While the city centre has experienced significant job creation and income growth, the surrounding areas face challenges, including rising economic inactivity rates.
The city centre has seen average disposable income growth at twice the national rate, driven by a surge in high-value jobs in knowledge-intensive sectors. However, outer boroughs like Salford and Trafford have struggled, with average real incomes growing by just 0.4% annually since the global financial crisis, compared to the national average of 0.7%. This disparity raises concerns about the effectiveness of Manchester's city-centric growth model in enhancing living standards across the region.
Despite impressive GVA and employment gains, productivity growth in Greater Manchester has been weak, averaging just 1.2% per year since 2008. Policymakers face the challenge of addressing high rates of economic inactivity while continuing to support the development of the city centre to ensure equitable growth throughout the region.
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