Economy of Manchester facts for kids
The economy of Manchester is one of the biggest in England. Manchester is a large city in the United Kingdom. It's part of the second-biggest urban area in the UK, with over 2.5 million people living there. The main business areas in Manchester are places like Spinningfields, Mosley Street, Deansgate, King Street, and Piccadilly Gardens.
Long ago, Manchester was the world's first industrial city, known for its factories. After a time, its economy and population started to shrink. But things have changed! By 2012, the southern part of Greater Manchester (which includes Manchester city) was the biggest economic area outside London. It grew by 3.8%, which was faster than many other big UK cities. Also, between 2002 and 2012, this area grew by 45%. The 2011 census showed that Manchester was the fastest-growing city in the UK in terms of population.
Manchester is a city of contrasts. While some areas face challenges, Greater Manchester is also home to many multi-millionaires, more than anywhere else in the UK outside London. In 2013, Manchester was ranked 6th in the UK for its quality of life among the 12 largest cities.
Manchester is seen as a 'beta -' global city. This means it's considered the second most important city in the UK globally, after London. The region is now a centre for knowledge and new ideas. A lot of research and business happens around the University of Manchester. Its research is ranked third most powerful in the UK, after Cambridge and Oxford universities.
Key industries in Manchester include:
- Digital and creative businesses
- Financial, legal, and business services
- Biotechnology (science using living things)
- Advanced manufacturing (making things with new technology)
- Environmental technologies
- Tourism
- Global sports brands
- Media
- Real estate (property)
Many foreign companies have their main offices here. Almost half of the top 500 businesses in the North West of England are in Manchester. Manchester City Council also plays a big role in business. For example, it owns a large part of Manchester Airports Group, which runs several UK airports, including London Stansted Airport. The council also owns the City of Manchester Stadium, home to one of the world's richest football clubs.
Contents
How Manchester's Economy is Measured
We can look at different ways to measure how well Manchester's economy is doing. These measurements, called "economic indices," help us understand things like quality of life and business success. But remember, these are just guides and don't tell the whole story.
Quality of Life in Manchester
- Manchester was ranked 6th in the UK for quality of life among 12 large cities. This ranking looked at things like house prices, rent, salaries, and how happy people were.
- In 2012, The Economist magazine ranked Manchester as the 51st best city in the world to live in. This study considered crime, education, healthcare, culture, and transport.
- According to a 2012 report by KPMG, Manchester was Europe's most affordable city among those studied. This means the cost of living here is lower than in many other European cities.
- In 2010, Manchester was ranked the 4th most challenging local area in England. This looked at things like income, jobs, health, and education. However, things have improved since 2007.
- Manchester was the 7th most congested city in Europe for traffic in 2010, and 2nd in the UK after London.
- It was ranked the 4th most bike-friendly big city in the UK in 2010.
- Manchester was named the 5th best sports city in the world in 2012. This is partly because of its famous sports clubs and their positive impact on the community.
Business in Manchester
- In 2012, KPMG reported that Manchester had the 9th lowest tax costs for businesses among industrialised cities worldwide. This makes it an attractive place for companies.
- Manchester is among the top 30 cities globally for investment. It ranks 12th for having a high percentage of its economy come from financial and business services.
- Manchester has moved up to 24th in the world for innovation, according to a report on "Innovation Cities." It's the 2nd highest-ranked city in the UK after London.
Understanding GVA
Gross Value Added (GVA) is a way to measure the value of goods and services produced in an area. It shows how much money is added to the economy by businesses and services.
The official statistics don't measure GVA just for Manchester city. Instead, they group Manchester with nearby areas like Salford, Stockport, Tameside, and Trafford. This group is called Greater Manchester South. These areas are very connected economically.
In 2012, the GVA for Greater Manchester South was about £34.8 billion. This made up a big part of the economy for the whole Greater Manchester area and the North West. It was also about 2.5% of the total GVA for the entire United Kingdom.
The economy of Greater Manchester South is only smaller than London's in the UK. Its GVA grew by 3.8% in 2012, which was faster than the average for other major UK cities.
| Year | GVA (£ million) |
Growth (%) |
|---|---|---|
| 2002 | 24,011 |  3.8% |
| 2003 | 25,063 | 4.4% |
| 2004 | 27,862 | 11.2% |
| 2005 | 28,579 | 2.6% |
| 2006 | 30,384 | 6.3% |
| 2007 | 32,011 | 5.4% |
| 2008 | 32,081 | 0.2% |
| 2009 | 33,186 | 3.4% |
| 2010 | 33,751 | 1.7% |
| 2011 | 33,468 |  0.8% |
| 2012 | 34,755 | 3.8% |
| Area | GVA (£ million) |
GVA growth (%) 2011-12 |
GVA (£ per person) |
GVA per person growth (%) 2011-12 |
| GM South | 34,755 | 3.8% |
23,476 | 2.9% |
| Greater Manchester | 50,991 | 3.1% |
18,870 | 2.5% |
| Core Cities average | 13,752 | 2.0% |
22,452 | 1.0% |
This average includes Newcastle, Liverpool, Sheffield, Leeds, Nottingham, Bristol and Birmingham, but not Manchester.
Productivity
Productivity measures how much value each employee adds. In Greater Manchester South, each employee added about £46,500 in 2012. This ranks 4th among major UK city areas, behind London, Edinburgh, and Leeds.
| Area | GVA per worker (£) |
GVA per worker % change 2007-12 |
| GM South | 46,500 | 12% |
| Core Cities average | 40,100 | 10.1% |
This average includes Newcastle, Liverpool, Sheffield, Leeds, Nottingham, Bristol and Birmingham, but not Manchester.
GVA by Industry
This table shows how much each industry contributed to the GVA in Greater Manchester South in 2011.
| Industry | Value (£ millions) |
Growth 2010-11 (%) |
% of total |
|---|---|---|---|
| Agriculture, forestry and fishing | 25 | 8.0 |
<0.1 |
| Production (making things) | 3,441 | 1.8 |
10.3 |
| of which manufacturing | 2,711 | 1.5 |
8.1 |
| Construction (building) | 1,688 | 3.5 |
5.0 |
| Distribution; transport; accommodation and food | 6,613 | 3.1 |
19.8 |
| Information and communication | 1,828 | 0.2 |
5.5 |
| Financial and insurance services | 3,217 | 15.9 |
9.6 |
| Real estate activities (property) | 4,192 | 13.1 |
12.5 |
| Business service activities | 4,652 | 15.9 |
13.9 |
| Public administration, education and health | 6,563 | 0.9 |
19.6 |
| Other services and household activities | 1,248 | 5.0 |
3.7 |
| Total | 33,468 | 0.8 |
Tourism in Manchester
Manchester is a popular place for visitors! It's the second most visited city in England (after London) and the third most visited in the whole United Kingdom (after London and Edinburgh).
Food and Drink in Manchester
Manchester has a huge variety of places to eat and drink. You can find the famous "Curry Mile" in Rusholme with many South Asian restaurants, or explore the Chinatown area for amazing East Asian food. The city centre also has many modern bars and bistros, especially around Deansgate Locks. There are also many independent fast food places and top-class restaurants.
Some famous food companies also have a base in Manchester. Kellogg's has had its European headquarters in Trafford Park since 1937. It's the biggest cereal factory in the world, making lots of Corn Flakes! McVitie's, known for its biscuits, also has a major factory on Stockport Road, where it has been since 1917.
Sport in Manchester
Manchester has strong connections to the sports world. Companies like Umbro and Reebok were started nearby. Another big sports clothing company, Adidas, has its UK head office in Stockport and a large warehouse in Trafford Park. These two sites employ 60% of Adidas's UK staff.
The city is also famous for its two major football clubs: Manchester City and Manchester United. Together, these clubs bring in a huge amount of money, making Manchester the richest footballing city in the UK based on club earnings. Only London, with its three big clubs (Chelsea, Arsenal, and Tottenham Hotspur), has similar figures.
Jobs, Welfare, and Education
In 2012, Manchester's population was about 510,800. It grew by 1.56% from the previous year, making it the second-fastest growing of the major UK cities. The 2011 Census showed that Manchester's population grew by 19% between 2001 and 2011, making it the fastest-growing area in the UK outside London. Interestingly, some people are even moving from London to Manchester, which is a change from the past!
Employment in Manchester
This table shows job statistics for Manchester compared to the North West and Great Britain.
| Age 16-64 | Manchester (%) |
North West (%) |
Great Britain (%) |
| Economically active | 69.4 | 75.4 | 77.3 |
| In employment | 60.8 | 69.1 | 71.1 |
| Unemployed | 11.9 | 8.2 | 7.8 |
| % of economically active who are self-employed | 6.4 | 8.4 | 9.5 |
Manchester has a higher number of people who are not "economically active." However, this is partly because Manchester has a very large student population, and many students are not counted as actively looking for work.
Earnings in Manchester
These tables show how much people earned in Manchester in 2013, both for those who work in the city and those who live there.
| Full-time workers | Manchester (£) |
North West (£) |
Great Britain (£) |
| Weekly pay (all workers) | 524.9 | 480.5 | 517.8 |
| Male | 570.8 | 516.9 | 558.3 |
| Female | 485.8 | 432.2 | 459.6 |
| Gender pay gap | 14.9% | 16.4% | 17.7% |
| Hourly pay (All workers) | 13.89 | 12.25 | 13.17 |
| Male | 14.48 | 12.73 | 13.80 |
| Female | 13.26 | 11.56 | 12.27 |
| Gender pay gap | 8.4% | 9.2% | 11.1% |
| Full-time workers | Manchester (£) |
North West (£) |
Great Britain (£) |
| Weekly pay (all workers) | 461.6 | 483.2 | 518.1 |
| Male | 478.5 | 519.4 | 558.8 |
| Female | 432.8 | 432.2 | 459.8 |
| Gender pay gap | 9.6% | 16.8% | 17.7% |
| Hourly pay (all workers) | 12.15 | 12.34 | 13.18 |
| Male | 12.23 | 12.84 | 13.80 |
| Female | 11.83 | 11.59 | 12.27 |
| Gender pay gap | 3.3% | 9.7% | 11.1% |
The "gender pay gap" shows the difference in average earnings between men and women.
Education in Manchester
These tables show how well students in Manchester did in their exams and the general education levels of adults in 2012.
| Manchester (%) |
England (%) |
|
| Pupils achieving 5+ GCSEs, A*-C | 81.3 | 81.8 |
| Pupils achieving 5+ GCSEs, A*-C with English and Maths | 53.2 | 59.4 |
| Pupils achieving no GCSEs | 1.6 | 0.5 |
| Level | Manchester (%) |
North West (%) |
Great Britain (%) |
| NVQ4 and above (like a degree) | 37.4 | 30.3 | 34.4 |
| NVQ3 and above (like A-levels) | 56.0 | 52.0 | 55.1 |
| NVQ2 and above (like GCSEs) | 69.1 | 69.9 | 71.8 |
| NVQ1 and above (basic qualifications) | 79.5 | 83.1 | 84.0 |
| Other qualifications | 7.3 | 5.8 | 6.3 |
| No qualifications | 13.3 | 11.1 | 9.7 |
Transport and Technology
Manchester is seen as the main international gateway for the North of England. It has a great transport system that connects different ways of travel, like air, rail, and local transport. In 2011, Manchester was ranked in the top 10 in Europe for its transport links.
Air Travel
Manchester Airport is the third largest airport in the UK, after Heathrow and Gatwick in London. Between 2012 and 2013, it handled over 20.5 million passengers. It's also one of the fastest-growing airports. Manchester Airport flies to over 200 destinations, which is more than any other UK airport. It has daily flights to Europe, North America, Africa, the Middle East, and the Far East. The airport has won awards for being the UK's best airport every year from 2008 to 2012.
The airport is owned by a company called Manchester Airports Group. Manchester City Council owns a big part of it (35.5%), and the other nine areas of Greater Manchester own 5% each. The airport employs about 19,000 people.
Rail Travel
Manchester has four main train stations in the city centre: Manchester Piccadilly, Manchester Victoria, Manchester Oxford Road, and Deansgate. Together, these stations had 37 million passengers in 2011-12.
Manchester will be a key part of the £560 million Northern Hub project. This project will connect all four Manchester stations, make more train lines electric, increase how often trains run, and make journeys faster between Northern cities.
There are also plans for High Speed 2, a high-speed railway, to connect Manchester Piccadilly to London Euston by 2033. Trains will also stop at Manchester Airport. This will cut journey times from Manchester to London from over 2 hours to just over 1 hour!
Local Transport
Manchester has the UK's largest light rail network, called the Metrolink. It connects many towns and areas around Manchester, from Bury in the north to Manchester Airport in the south, and Ashton-under-Lyne in the east. The Metrolink also reaches important places like MediaCityUK and the Etihad Stadium. The newest part of the Metrolink, connecting to Trafford Park and the Trafford Centre, opened in March 2020.
The city's bus services are run by companies like Stagecoach Manchester and First Greater Manchester. Stagecoach Manchester is a very large bus company, carrying over 87 million passengers a year.
Technology in Manchester
Manchester is the only city in the UK to offer super-fast fibre optic broadband speeds up to 200Mbit/s, and it's used to test new technologies. In MediaCityUK, download speeds can reach an amazing 10 gigabits per second!
Because of its central location, all the main telecom companies and fibre optic networks meet in Manchester. This makes it a key place for internet access in the North of England. MaNAP is a major internet traffic hub, mainly serving the Midlands and North of England. It's the only major access point outside London, offering cheaper access to world networks.
Manchester is also a leader in cloud computing. Big tech companies like Cisco, Oracle, and EMC have offices here. IBM is even developing new cloud computing technologies in its Manchester research lab. Many other companies that provide cloud solutions are also based in Manchester.
The city is home to a growing number of digital companies. These businesses specialize in things like SEO (making websites easier to find online), web design, and online marketing. The growth of Manchester's digital scene is clear with the creation of its own online community, Manchester Digital.
Images for kids
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The Beetham Tower, Manchester (right), the 2nd tallest building in Manchester and in the UK outside London, the Great Northern Tower (left) and the Great Northern Warehouse (centre)
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The Manchester Metrolink will have the largest tram system in the UK once expansion is complete.
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Sir William Siemens House on Princess Road, West Didsbury. It is head office for Siemens Automation and Drives
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