Aberdeen is among the top six most improved UK cities, outperforming the UK average on key economic wellbeing factors, according to PwC’s Good Growth for Cities Index.
This year, the city ranks at 31st place on the Index - between Glasgow (35th) and Edinburgh (15th) - in comparison with 37th last year. As well as tracking above the UK average on skills for 16-24-year-olds and over 25s, Aberdeen also outperforms in terms of its house-price-to-earnings ratio.
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.
Martin Cowie, Market Senior Partner for Aberdeen at PwC Scotland, said:
“It’s wonderful to see Aberdeen among the UK’s most improved cities. It’s particularly important that we’re tracking above the UK average for some key public priorities, including skills and the ratio of house prices to earnings.
“With new analysis showing that people are prioritising work-life balance more as post-pandemic working patterns allow greater flexibility and control over working location, it bodes well that Aberdonians are experiencing improved affordability when it comes to housing in comparison with the average UK citizen.
“It’s absolutely key to stimulating economic growth in the North East of Scotland, where key industries like energy transition as well as food and drink are based, that people who want to live and work here can afford to do so, and that we have a strong pool of talented individuals to attract businesses to invest in the city and create jobs that will allow skilled workers to thrive.”
Of all 12 economic factors measured, Aberdeen’s biggest improvement was in skills for 16-24-year-olds, with the biggest decline in new business, in comparison with last year’s Index. The city performed broadly in line with the UK average on most other measures, apart from new business and health, where it tracked below.
The report also sets out expected economic growth for Scotland in 2023 and 2024 – predicting it will sit eighth of the UK’s 12 nations and regions. However, unlike Glasgow and Edinburgh, Aberdeen is ranked outside the top 20 for expected economic growth in 2024.
Martin Cowie, Market Senior Partner for Aberdeen at PwC Scotland, said:
“While Aberdeen performs broadly in line with the UK average, we must continually look at opportunities to improve and unlock further growth.
“There’s a huge opportunity in the North East – as demonstrated in our Green Jobs Barometer – to unlock the potential to be a leader in a just energy transition and provision of green jobs. It’s imperative that this remains a key focus for business, local government and all involved parties to ensure Aberdeen and the North East makes the most of the skills and sector experience at its disposal to stimulate future growth.”