London accounts for 80% of new private sector jobs

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New research from the think tank Centre for Cities has found the economic disparity between London and the rest of the country is growing. Since 2010, the capital has created 80% of new private sector jobs.

With London being responsible for 10 times more private sector jobs than any other UK city and around a third of those between the ages 22 and 30 moving there, Centre for Cities has said regions should receive increased devolved power.

While this shows an imbalance in the UK economy, Paul Swinney, a senior economist at the think tank, said this was still good for country overall: “It’s one of the best performing cities in the world and from a national perspective we need to continue supporting the growth of London.”

In regards to other cities, Edinburgh and Birmingham were the next highest creators of private sector jobs, while Liverpool also had “welcomes signs of growth”. Centre for Cities also claimed this had helped to counteract the loss of public sector jobs.

Bristol on the other hand lost more private sector jobs than any other city, with 13,900 of them disappearing. Along with this, the entirety of Wales’ contribution to the economy was less than Greater Manchester’s and Greater Leeds’.

Greg Clark, Cities minister has said the report shows why the Government brought about its city deals programme that gave more economic power to cities. The data used by Centre for Cities only went up to September 2012 and Clark has said that since the city deals programme “the cities have gained momentum.”