Key facts
- Greater Manchester's economic growth has not resulted in higher earnings or income for residents in outer boroughs, according to Oxford Economics.
- Boroughs such as Salford and Bolton have seen income growth lag behind the national trend.
- High rates of economic inactivity, particularly long-term sickness, are contributing to the disparity.
- Weak transport links and a small labor market are cited as barriers to growth spreading across the region.
- Manchester city center's productivity growth has slowed since the 2008 financial crisis.
Greater Manchester's narrative of "exceptional economic growth" has not translated into widespread improvements in earnings or income for residents in its outer boroughs, according to research by Oxford Economics. The report suggests that while the city center has seen some gains, areas like Salford and Bolton have lagged behind the national average.
Economists attribute this disparity to several factors, including high levels of economic inactivity, a rise in long-term sickness, and insufficient productivity growth away from the city center. Poor transport connections and a relatively small labor market are also identified as impediments to the spread of economic benefits across the entire region.
Despite these challenges, the report notes that Manchester city's average disposable income growth has outperformed the national average. However, productivity growth in the city has slowed since the 2008 financial crisis, though it remains higher than the UK and London averages. Conversely, the think tank Centre for Cities has lauded Manchester's transport initiatives, such as the Bee Network buses and tram lines, as a "devolution success story."