New Employment Hero research suggests Leeds is attracting talent from outside the region and growing employment at small businesses, but faces a challenge retaining early-career workers.
Key takeaways
- Leeds SMEs are drawing applicants and workers from outside the region.
- Flexible working and personal connections rank ahead of salary as retention factors.
- Employers face a particular challenge retaining workers at the start of their careers.
LEEDS, 15 October 2026: Leeds is becoming a magnet for national talent, according to new research from Employment Hero. Nearly six in ten (59%) Leeds SMEs have seen more job applicants from outside the city or region in the past two years.
The research, carried out by Savanta among 500 small business decision-makers and 1,500 workers across Leeds and Manchester, shows Leeds employers are giving people reasons to stay that go beyond pay, but face a challenge in holding on to their youngest workers.
Talent is coming to Leeds
Six in ten (61%) Leeds workers moved there from elsewhere, against half (52%) in Manchester. Proprietary Employment Hero data shows employment at small businesses in Leeds grew 12.1% in the three months to September, five times the rate in Manchester (2.4%). Nearly six in ten (58%) Leeds SMEs expect to grow their headcount in the next 12 months.
Pay is not what keeps people
Six in ten (61%) Leeds workers would stay on their current salary rather than relocate for a higher one, and more than four in ten (43%) have turned down or not pursued a job elsewhere so they could stay in the city. Family and friends were the most common reason for staying (35%), followed by partner or family circumstances (24%) and flexible working (23%).
With many young people still considering leaving, the challenge is making sure Leeds keeps offering the opportunities and progression that will convince the next generation to stay.
The early-career retention gap
More than four in ten (44%) early-career workers in Leeds have seriously considered leaving the city for a career opportunity in the past two years, against around a quarter (26%) in Manchester. Yet three-quarters (76%) of Leeds 25 to 34-year-olds are more confident about building a career in the city than they were two years ago.
Methodology: Employment Hero commissioned Savanta to survey 1,500 workers living in Leeds and Manchester, and 500 senior decision-makers at small and medium-sized businesses in both cities. Fieldwork took place between 24 September and 5 October 2026.
