New research shows despite challenging economic conditions, Greater Cambridge continues to be an area which employment growth outstrips the national average.

The results from the Centre for Business Research (CBR), portray a picture of continued but slightly lower overall corporate employment growth in the Greater Cambridge area. Growth slowed down from 6.3% in 2022-23 to 5.3% in 2023-24, suggesting that the UK recession in the third and fourth quarters of 2023 had some impact on business.

The latest data shows the job growth was driven by knowledge intensive (KI) sectors: knowledge intensive services (up 11.8%), information technology and telecoms (up 6.7%) as well as high tech manufacturing (up 5.9%).

The research highlights that areas such as life sciences and healthcare, which didn’t perform as fast as reported in the comparable timeframe in 2022-23, still grew at 5.6% - significantly above the national average.

Cllr Elisa Meschini, chair of the Greater Cambridge Partnership, said: “These latest figures confirm what we all know – the Greater Cambridge economy is resilient and is seeing job growth despite difficult economic conditions. However as has been said we have said many times before we cannot be complacent. New jobs are still being created – at numbers which are the envy other regions – but given the fluctuations in the figures, we should use them to understand what is happening to our local economy.

“This study and research of the economic statistics is vital if we, as leaders of the Greater Cambridge in both the public and private sector, are to make sure that our area remains a draw to people and businesses. We have to understand why some sectors are performing and whether we can intervene in terms of infrastructure to support others which aren’t doing so well – albeit from a position of strength. This is why I am proud that the Greater Cambridge Partnership continues to fund this hugely important research for the benefit of our economy.”

Dan Thorp, chief executive at Cambridge Ahead, said: "The latest Greater Cambridge Employment Update highlights the region's continued strong economic resilience, with nearly 7% growth in the knowledge economy over the past year. Significant sub sectors of life sciences and healthcare and technology are leading job creation and heavily supporting regional prosperity. While the UK recession has impacted some industries, the data shows a clear distinction in highly positive performance, emphasising the need for accurate local economic insights. Greater Cambridge is extremely well-positioned for continued growth and innovation, driven by its thriving knowledge economy and deeply entrepreneurial spirit."

Other notable points uncovered in the research were:

• The slowdown in employment growth was marked in South Cambridgeshire (4.4% compared with 7.7% during the previous year).

• Whilst one – nine employee businesses have been the fastest growing companies in ‘Wholesale and retail distribution’ and ‘Construction and utilities’, 10+ employee businesses exhibited particularly fast growth in ‘Education, arts, charities, social care’, ‘Knowledge intensive services’ and ‘Information technology and telecoms’

• The resilience of the Greater Cambridge corporate economy also benefited from the continued yet lower growth of non-KI sectors. Non-KI employment increased by 2.8% in 2023-24, a slowdown from 4.9% in 2022-23 which suggest the worst impacts of recession were felt more amongst non-KI sectors.

The research is produced by the Centre for Business Research (CBR) at the University of Cambridge and sponsored by a collaboration between the Greater Cambridge Partnership and Cambridge Ahead.

The current dataset, showing all Cambridge-based companies, can be viewed via the Cambridge Cluster Insights tab at www.cambridgeahead.co.uk.

The data is also available via https://www.greatercambridge.org.uk/about-us/research-and-evidence