New analysis from Avison Young reveals an extra 6,000 jobs will be created in Liverpool in 2022 taking total employment to record levels in the city. Tony McDonough reports
A record number of people will be employed in Liverpool by the end of 2022 with the health and life sciences sector a key driver in the creation of 6,000 jobs, new analysis shows.
Drawing data from a number of sources, national property consultancy Avision Young has offered an economic forecasts for a number of UK cities. It says that as Liverpool recovers from the pandemic it is likely to see GVA growth in 2022 of 6%. This is 10 times the normal average for the city of 0.6%.
This will be driven by the rebound in the accommodation, food, arts and entertainment and education sectors. An extra 6,000 jobs will take total employment for the city to a record 286,000. More than 1,800 of these roles are forecast to be office-type jobs, while accommodation and food services is predicted to see around 1,000 new posts created.
Avison Young says the fast-growing Knowledge quarter and the health and life sciences sector is driving a lot if the optimism in Liverpool. Earlier this month it was revealed new laboratories using artificial intelligence and robotics will be built in Liverpool to combat future pandemics.
There is a significant amount of high-profile demand from quasi-office occupiers, set to capitalise on The Pandemic Institute’s commitment to the city during 2021, in addition to the Royal College of Physicians also moving into The Spine.
Further office and lab space at Paddington Village is earmarked with HEMISPHERE, the first net zero carbon office building planned for the city. The building will feature 116,000 sq ft of grade A office space for health, education, science and tech occupiers.
Upper Central, the new Littlewoods TV and film hub, as well as £250m of new transport and road infrastructure, will also bring significant investment into Liverpool. At the other side of the city, the new Everton stadium in the North Docks is igniting further regeneration and helping to accelerate the delivery of Liverpool Waters.
Logistics is expected to see output growth of 9%, which is its highest for more than 20 years. The strength in this sector is driving Liverpool’s industrial market, which has experienced significant reduction in available stock whilst demand has soared, leading to rises in rents and land values, Avison Young says.
Liverpool’s freeport status will continue to drive new sources of occupier demand for a port which has already helped facilitate the city’s handling of approximately 45% of the country’s trade with North America.
Another sector that was booming in 2021 and is set to have another strong year, is the residential market. Liverpool saw exceptionally strong house price growth in 2021, at 17.9%, it was well ahead of the national average.
This is partly driven by Liverpool’s relative position in the housing market compared to the wider country, particularly southern locations. The city benefits from relatively good affordability, enabling buyers to put upward pressure on pricing.
Stephen Cowperthwaite, regional managing director and principal at Avison Young, said: “It is incredibly reassuring to see that the data backs up the more intangible feelings of optimism across the region.
“Like any city, Liverpool had its challenges in 2021 as it navigated its COVID response and recovery, but it has demonstrated its strength in health and life sciences. There are so many development and investment opportunities right across the region, as well as sustainable repurposing of existing stock.”