Greater Manchester is at the forefront of productivity growth in the north of England, according to ONS data and analysis by the Northern Powerhouse Partnership think-tank.
Between 2004 and 2022 (the period of time for which data exists) the figure for gross value added per hour worked, which is used to measure productivity, increased by 26.4% in Greater Manchester.
The city-region saw by far the biggest increase in the North West, with Lancashire second with a change of 12.8%. In the north as a whole, it was followed by East Yorkshire and Northern Lincolnshire, with an increase of 20%, and West Yorkshire, with an increase of 16.9%. For comparison, England as a whole saw GVA per hour worked increase by 13.7%.
Although productivity remains higher in London and the South East, the incredible growth seen by the city is helping to close the economic gap between north and south and rebalance the UK’s economy away from London.
Lord Jim O’Neill, Chair of the Northern Powerhouse Partnership, commended local leadership in Greater Manchester for being “laser-focused” on bringing in investment and driving growth.
He said: “With the right focus and determination, other city regions – many of which alongside Greater Manchester continue to lag behind – could see the same kind of progress.
“This would not only be a victory for these local economies themselves and the local workers who will benefit from higher wages, but will deliver a massive boost to the UK economy as a whole.”
“Greater Manchester productivity rose over three times faster than London.”
— Andy Burnham (@AndyBurnhamGM) June 29, 2024
Great interview by Lord Jim O’Neil on #R4Today.
GM is leading the way to growth for the next Government. 👍🏻 pic.twitter.com/fY2acSwhma
Slow productivity growth has been a major issue affecting the UK’s economy since the financial crisis in 2008. According to the Northern Powerhouse Partnership, much of this slowdown is driven by underperformance of the regions outside of London and the South East.
The think tank attributes much of Greater Manchester’s performance to investment in transport infrastructure – in particular public transport – and ambitious and strategic local leadership.
The figures paint an encouraging sign for the impact devolution has had on the city-region, and likely strengthens the case for increasing powers granted to devolved areas across the country.
Image credit: ChrisClarke88/Wikicommons
