Greater Manchester Labour Market Data 2026: Employment, Wages + Apprenticeships

Greater Manchester: Labour Market at a Glance

Greater Manchester represents the UK's largest regional economy outside London, with a population of 2.8 million and a workforce of approximately 2.2 million. The Combined Authority brings together ten local authorities: Manchester, Salford, Bolton, Bury, Oldham, Rochdale, Stockport, Tameside, Trafford and Wigan.

Market Snapshot

Employment indicators (Q4 2025):

• Employment rate at 71.4% sits below UK average of 75.1%
• Unemployment rate of approximately 5.0% exceeds UK average of 4.5%
• Economic inactivity rate of 24.8% sits above UK average of 20.8%
• Claimant count of approximately 150,000 represents 5.3% of working age population
• Projected employment growth of 1.3% annually through 2028 ranks joint-fastest in UK

Sources: ONS Labour Force Survey, GM Labour Market Insights Pack. All salary figures are gross income before tax.

Key Takeaways for Job Seekers in 2026

• Approximately one in 21 working-age residents actively seek work across the region
• Top shortage fields for 2026 include digital technology, healthcare, construction and logistics
• Wages sit below national average but lower living costs provide meaningful offset
• Best chances in 2026 for candidates with digital skills, healthcare qualifications or engineering experience

Employment and Unemployment Trends

Greater Manchester's unemployment rate of approximately 5% entering 2026 sits above the national average but represents improvement from recent peaks. The region's employment rate has increased from 67.8% to 71.4%, though this remains below the UK figure.

Borough-level variation entering 2026:

• Oldham: 5.4% unemployment (highest), 7.3% claimant count, 28.3% economic inactivity
• Tameside: 4.5% unemployment, lowest job density at 0.5 jobs per working-age adult
• Trafford: 3.2% unemployment (lowest in region)
• Manchester city: 5.1% unemployment, 28.3% economic inactivity

Youth unemployment presents a significant challenge across Greater Manchester heading into 2026. The NEET rate has increased, with some estimates suggesting one in 16 working-age residents in certain boroughs are officially unemployed.

The Greater Manchester labour market data for training providers guide provides detailed borough-level analysis of the £92M AEB allocation and digital technology demand patterns for 2026.

Wage Trends and Earnings Data

Greater Manchester wages sit below national averages heading into 2026, though the region's lower living costs provide meaningful compensation.

Earnings comparison (latest data):

• Median weekly earnings of approximately £601 sit £30 below England average
• Annual equivalent of approximately £31,250 versus UK median of £37,430
• Housing costs significantly below London provide real purchasing power offset

While nominal earnings are lower than national averages, Greater Manchester's cost of living is substantially below London and the South East. Disposable income after essential costs can be comparable or higher than in higher-wage regions.

By 2028, Manchester's local economy is projected to be more than £2.9 billion larger than in 2024 when measured by gross value added. This growth should support continued wage improvement through 2026 and beyond.

A £35,000 salary in Manchester may provide better living standards than £45,000 in Greater London given the significant housing cost differential.

Apprenticeship Statistics

Greater Manchester has historically recorded strong apprenticeship take-up relative to population, supported by significant GMCA investment continuing into 2026.

GMCA apprenticeship initiatives for 2026:

• Apprenticeship Levy Transfer Scheme has supported over 4,000 apprentices and 1,683 SMEs
• £47.6 million pledged from levy-paying organisations including Goldman Sachs and Lloyds Banking Group
• Path 2 Apprenticeships programme invests £7.5 million for ages 19-29
• Key sectors include construction, digital, engineering, health and social care

The digital sector has shown particular growth, with Greater Manchester positioning itself as a major centre for technology apprenticeships. Training providers can access detailed information in the Greater Manchester training providers directory, covering Manchester College, Bolton College, CodeNation and GMCA programmes.

Hiring Outlook by Sector for 2026

Greater Manchester's economy has diversified substantially from its industrial heritage, with technology, professional services and healthcare now among the largest employers heading into 2026.

Growing sectors for 2026:

• Technology and digital services: AI firms valued at £3.2bn represent fivefold growth since 2020
• Green technology: HyNet project backed by £22 billion includes Trafford Park pipeline
• Healthcare: NHS trusts remain major employers with ongoing clinical recruitment
• Advanced manufacturing: Automotive and aerospace supply chains provide skilled employment

Manchester Digital Campus project anticipates 7,000 digital civil service jobs being created through 2026 and beyond.

The devolved funding MCA compliance guide explains the specific rules for GMCA-funded provision, while ILR compliance guidance covers data quality requirements.

What This Means for Job Seekers in 2026

Greater Manchester offers genuine opportunity for job seekers willing to target growth sectors and develop in-demand skills. The region's projected employment growth rate of 1.3% annually through 2028 ranks joint-highest among UK cities.

Practical recommendations for 2026:

• Target growth sectors including technology, healthcare, green economy and advanced manufacturing
• Consider geographic flexibility as opportunities vary significantly by borough
• Leverage lower living costs when comparing offers against southern regions
• Explore apprenticeship routes through GMCA levy transfer and Path 2 programmes

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