Cambridge has seen enormous increases in the number of jobs and residents in the city, according to a Centre for Cities report published last week. The survey of the economic performance of Britain’s major urban areas, conducted by think-tank Centre for Cities, shows that due to its success, Cambridge is one of a few cities driving national economic growth.

Between 2004 and 2013, Cambridge saw a 12,400 increase in the number of jobs, in spite of mild business growth at just above the national average. Nearly half of them were created in the private sector and almost a third of positions were ‘knowledge-intensive’.

The city’s status as the capital of Silicon Fen and a hub for high quality scientific research and business innovation is reflected in the fact that Cambridge has the highest number of patents granted, per 100,000 people, of any UK city. This has resulted in a population increase of 14,300 over the period studied, the fourth highest rate in the country.

These figures accompany promising employment statistics – Cambridge had the second highest employment rate in 2014, behind Warrington, with an employment rate of 78.9%. Figures also show that Cambridge has the lowest number of people claiming Jobseeker’s Allowance of any UK city, and has the highest number of residents with high-level qualifications.

However, the report raised concerns about the affordability of housing in light of the city’s population increases. Cambridge showed the greatest increase in house prices nationally; a 14.3 per cent rise in 2014 meant that the average house was £51,700 more expensive than a year earlier.

In addition, Cambridge had the second largest increase in affordability ratio, measuring the ratio between average house prices and average earnings – the increase of 5.6 per cent since 2004 was second only to London. Cambridge ranked seventh for the number of new homes built in that period. 

The report also warned that a widening divide between cities in the North and cities in the South would be detrimental to national prosperity. It showed that for every twelve jobs created in southern cities, only one was created in northern cities, and that the areas suffering the greatest number of job losses were in the North.

The report urged the next government to promote measures which would close the gap between cities in the North and South.