Leeds is becoming a magnet for national talent, but keeping young workers is the next test, Employment Hero finds

Young professionals collaborating in a Leeds office

Employment Hero research finds Leeds is attracting talent and growing small-business employment, but must improve early-career retention.

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.

Michael Mitchell, VP of Sales, UK, Employment Hero

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.

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