Mancunians face significant social and financial challenges according to a report measuring the city's performance.
The sixth edition of the city’s State of the City report shows an increase in population, a rise in unemployment and an increase in the number of benefits claimants.
Manchester City Council leader Sir Richard Leese said: "What this report shows is that we are continuing to make progress on most fronts despite the difficult economic backdrop, and have strong grounds for optimism.
“We still face many challenges to achieve our vision of a healthier, wealthier and happier city."
The 2011 Census figures illustrate that the population of Manchester has increased to more than half a million resulting in a 19% increase.
A Manchester community strategy estimated that the population figure would be 480,000 by 2015, the Census figures shows that this was surpassed four years early.
The number of people employed in Manchester fell from 304,800 in 2009 to 298,800 in 2010, and in 2011 the number of Manchester residents claiming out-of-work benefits rose to 64,080 from 58,140 in 2008.
Life expectancy in Manchester continues to lag behind the national average, as boys born in in the city can expect to live 4.5 years less than the national average and girls 3.5 years less.
Despite the glum statistics the report indicates that the city is well-placed to respond to an upturn.
Manchester’s employment base is well represented in sectors which are expected to lead the recovery including IT, finance, professional and scientific activities and business support services.
Educational performance also continues to improve with 52% of pupils achieving five or more A* to C grades including English and Maths compared to 46% in 2010.
The number of overnight stays in Manchester in 2010 went up to 6.8 million, an increase of one million on the 2009 figure demonstrating the city's growing pull as a leisure and business destination.
Statistical evidence from the State of the City report is used to help city leaders, both from the City Council and partner agencies, to understand the priorities for the future.
The full report can be downloaded from http://www.manchesterpartnership.org.uk/