West Midlands cities ranked above UK average for work-life balance and income distribution

West Midlands cities included in PwC’s Good Growth for Cities Index are out-performing or in line with the UK average on work-life balance, measured by an increase in the proportion of employed people working less than 45 hours a week, and income distribution, measured by the ratio of median to mean income, an indicator of wealth equity.

The Demos-PwC Good Growth for Cities Index ranks 50 of the UK’s largest cities (generally considered those with populations of at least 350,000 people), plus the London boroughs as a whole, based on the public’s assessment of 12 economic measures, including jobs, health, income, safety and skills, as well as work-life balance, housing, travel-to-work times, income equality, high street shops, environment and business startups. 

Stoke-On-Trent and Wolverhampton & Walsall ranked above the UK average for safety, whilst Coventry and Stoke-On-Trent out-performed the UK average on skills in the 25+ year old age bracket and transport respectively. Health and environment indicators were in line with the UK average across all the West Midlands cities included in the Index.

However, the report states that the West Midlands is expected to see the second weakest economic growth in both 2023 and 2024, with a growth rate of -0.20% in 2023, and 0.74% in 2024. This growth is lower than the UK average of 0.05% in 2023 and 0.99% in 2024. 

Birmingham

Birmingham is the lowest performing West Midlands city in this year's analysis, ranking 47th out of 50 UK cities in the Index, decreasing from its 2022 ranking of 46th. The city out-performed the UK average on work-life balance indicators, and in line with the UK average on health, new businesses, affordability of housing, transport, skills, income distribution, the environment and safety.

Areas for improvement include jobs, income and high streets.

Coventry

Coventry is ranked 27th out of 50 UK cities in this year’s analysis, decreasing from 21st in 2022. Coventry is expected to have the worst growth prospects of the West Midlands cities included in the Index. The city is forecasted to have a growth rate of -0.3% in 2023 and 0.5% in 2024, which ranks it as the city with the sixth and fifth worst growth in these respective years. This lack of growth is mainly caused by the high proportion of this city’s economic activity within the two worst-performing industries of the next two years: electricity, gas, steam and air; and water supply and sewerage.

However, positive news in Coventry comes through in the Index, which shows the city performing above or in line with the UK average on all indications apart from store openings and closures on its high streets. 

Wolverhampton & Walsall

Wolverhampton and Walsall is ranked 37th out of 50 UK cities in this year’s analysis, decreasing from 28th in 2022. The area performs above the UK average on work-life balance, income distribution and safety indicators, and in line with the UK average on health, affordability of housing, transport and the environment. 

Areas for improvement include jobs, income, new business, skills and high streets.

Stoke-on-Trent

Stoke-on-Trent is ranked 21st in this year’s analysis, improving from 26th in 2022. Out of all the West Midlands cities included in the Index, Stoke-on-Trent is forecast to grow the most in the next two years, and was the third most overall improved city included in this year's Index.

The city is expected to grow by 0.22% in 2023, which is the sixth highest growth rate of the 50 cities included within the analysis. This strong growth is primarily driven by the high concentration of Stoke-on-Trent’s economic activity that takes place in the arts, entertainment and recreation industry. This is expected to be the strongest growing UK sector over the next two years, growing by 5.3% in 2023 and 6.2% in 2024.

Additionally, Stoke-on-Trent has a high concentration of its activity within the human health and social work industry, which is estimated to be a sector of notable growth in coming years, adding to the forecasted growth for the city in 2023. 

Matthew Hammond, PwC UK Midlands Regional Market Leader & Birmingham Senior Partner, said:

“The PwC 2023 Good Growth for Cities report highlights key areas in which the West Midlands performs below the UK average, including overall economic growth. 

The 2022 PwC economic outlook analysis showed that the region's economic output remained around 3.3% smaller than pre-pandemic levels and identified the Midlands as one of the regions with most potential for growth.

The post-pandemic opportunities which will drive inclusive growth across the region are centered on our growth stock sectors - advanced manufacturing, med tech and life sciences, digital and creative technologies, future mobility & low carbon technologies, supported by financial, business and professional services.  Future growth sectors should be used as a roadmap of opportunity, with continued support from public and private businesses, our world class universities, local and central government.

Combined with ambitious plans for the continued regeneration of our towns and cities, connected by several of the most significant real estate and infrastructure projects in the UK, the medium and long-term transformation opportunities are clear but yet to be fully realised.

Birmingham City Council’s recently launched Future City framework sets out bold ambitions for the next 15 years, aligned with many of the indicators in our Index, showing the potential future good growth for the city. The West Midlands will also benefit from the recently announced investment zones.

Part of the journey of course is the region's low carbon and net zero ambitions. Our recent Green Jobs Barometer report showed that the West Midlands has seen a surge in green jobs in the last 12 months, having doubled since November 2021. Employers in the West Midlands have an opportunity to innovate and consider how their operations can become greener, particularly in the manufacturing sector that represents a high proportion of the Midlands’ economy. Embracing new, greener technologies and investing in skills will provide benefits for business operations and more employment opportunities in the region, as well as making a difference to the environment.

It is important to recognise that some of the UKs major cities rank in challenging areas of the overall outcome, but these are all those places with some of the greater extremities of scores across the weighted factors.  Amongst the many positives for these larger cities Birmingham has also scored highly on work-life balance, reflecting other reports which set out the advantages of the city as a place to live and work.”

Neil Rami, chief executive of the West Midlands Growth Company, said:

“Due to its industrial mix and demography, the West Midlands economy has been disproportionately affected by the impact of the Covid pandemic and new trade frictions with the EU. However, early indicators show the overwhelmingly positive impact of the Birmingham 2022 Commonwealth Games, which WMGC are witnessing first-hand through the growing, pan-regional demand from both inward investors and tourists. It is vital that the West Midlands Deeper Devolution Deal is fully realised as an important mechanism for public reform, in order to address the inequalities faced by our communities.”

Deborah Cadman, Chief Executive of Birmingham City Council, commented: “While Birmingham has had a great record of attracting inward investment in recent years, there is also an imperative to ensure growth is inclusive so it reaches all parts and people. This is about securing opportunities for a city with a very young, growing population and addressing some of the highest levels of poverty and disadvantage in the country.

“We’ve just launched our Future City framework, which sets out our ambition to be more bold and confident in grasping opportunities to tackle these inequalities and transform the city. The Commonwealth Games legacy, HS2 and a host of major regeneration schemes across the city mean that this is Birmingham's golden decade of opportunity.This approach to inclusive growth prioritises bringing forward development opportunities, and the public and private sectors working more collaboratively and creatively together to solve important problems.”