East Midlands has emerging employment hub and is a vibrant region for entrepreneurs shows PwC's 2025 Good Growth for Cities Index

• Derby and Lincoln both perform above the UK average for jobs, indicating that there is an employment hub in the region. 

• New businesses are thriving in certain areas of the region – the number of new businesses established per head was above the UK average in Leicester and Northampton. 

• Lincoln is the highest performing city in the East Midlands – ranking 20th out of 50.

• The region’s lowest performing city is Nottingham – ranking 40th out of 50.  

The 2025 Demos-PwC Good Growth for Cities Index (‘the Index’) indicates that the East Midlands has an emerging employment hub, with Derby and Lincoln both performing above average for jobs, measured by unemployment rates. Leicester and Northampton all performed above the UK average for the number of new businesses established per head. 

Lincoln ranks 20th in this year’s Index due to improvements in job opportunities, higher   educational attainment for 16 to 24 year olds, and more equal income distribution, compared to last year. Nottingham was the lowest performing city in the region, ranking 40th.  

The Index ranks 50 of the UK’s largest cities, excluding London, based on both the public’s assessment and the actual performance of 12 economic measures, which this year, in order of public importance, were: income; income distribution; safety; work-life balance; health; jobs; housing; environment; transport; high streets; skills and new businesses. The higher the city scores on the public's top priorities, the better the city performs on the Index. 

Financial measures such as income and jobs have previously led in their importance to the public by a wide margin, but results from this year’s survey reveal a rise in the importance of non-financial measures. Skills, high streets, housing and transport have all risen on the public agenda. Income and income distribution remain the top two priorities but have seen their sharpest year-on-year decline.  

The East Midlands performance 

The six Good Growth Cities in the East Midlands generally performed below the national average when measured against public priorities. 

Rankings in the Index are as follows: 

• Lincoln: ranked 20th (24th last year)

• Derby: ranked 24th (23rd last year) 

• Milton Keynes: ranked 30th (wasn’t included in Index last year)

• Leicester: ranked 32nd (20th last year)

• Northampton: ranked 36th (39th last year)

• Nottingham: ranked 40th (25th last year)

Alex Hudson, Market Senior Partner, East Midlands at PwC, said: 

"The Index findings present a compelling narrative of transformation and opportunity within the East Midlands. The emergence of Derby and Lincoln as employment hubs underscores the region’s growing influence in the UK's economic landscape. 

“The entrepreneurial spirit thriving in cities like Leicester and Northampton further highlights the dynamism and resilience of our local business community. Despite varied performances across the region, these insights are a useful tool for policymakers, investors, and business leaders to address existing challenges and leverage strengths to encourage inclusive growth. 

“By championing initiatives that support skill development, equitable income distribution, and enhanced infrastructure, we can cultivate a robust and sustainable economic future for the East Midlands – the opportunity is clear."

How other cities in the UK performed 

York is the highest performing city in the Index, with Edinburgh rising to second place and Bristol in third place. These cities scored highly across high streets, skills, and jobs which are key indicators of prosperity that the public increasingly values. York ranked among the top three cities for both high street and jobs.  

Rachel Taylor, Government and Health Industries Leader at PwC, said:  

“Our research indicates that ongoing financial pressures are pushing people to prioritise things that improve their quality of life and future prospects. Bustling high streets, new businesses, and reliable transport links build confidence and optimism. To strengthen local and regional economies in the UK, we need to concentrate on the fundamental elements that support thriving communities and businesses. This involves maximising local strengths with genuine economic potential and achieving noticeable results. 

“Good growth strategies should recognise the link between economic and social foundations. People need secure jobs, accessible services, reliable transport, and a sense of wellbeing to thrive, while businesses rely on healthy, skilled populations and stable infrastructure to grow.” 

Carl Sizer, Chief Markets Officer at PwC, said:  

“The cities and regions making the most progress are those that align their sector priorities with local strengths and invest in essentials like housing, transport, digital infrastructure, and skills. They ensure that the priorities of communities, employers, and key institutions are in sync. A strong economic identity is crucial, understanding what a place stands for, its strengths, and growth plans is vital for local leaders, investors, businesses, and residents alike. Clarity helps direct decisions, focus efforts, and make a strong case for investment.  

“With these foundations, local growth strategies become more than policy documents. They serve as a framework connecting short-term efforts with long-term goals, organising choices to support resilience, opportunity, and inclusive growth. To stay relevant, these strategies need to be active and adaptable, regularly updated, transparently tracked, and based on clear insights into what's working and what needs change.” 

About the Good Growth for Cities Index  

• The Demos-PwC Good Growth for Cities Index was established in 2011 and is updated annually.  

• In recognition of its unique scale and economy, London is not included in this year’s Good Growth Index. The Index looks beyond core economic indicators (such as GDP) and instead considers broad measures of economic wellbeing to measure success.  

• The Index measures the performance of 50 of the UK's largest cities, each typically having a population of at least 340,000, excluding London. It also assesses 37 Rural Areas, based on the prior Local Enterprise Partnerships (LEPs) definitions, and 16 Combined Authorities and city regions, using a set of 12 factors deemed most crucial by the public for economic well-being. These include jobs, health, income, safety and skills, as well as work-life balance, housing, travel-to-work times, income equality, high street and shops, environment and business start-ups. 

• The jobs metric is based on the unemployment rates for 2021-2023.