Why Top Talent Stays in Cities - And How to Change That

For the past few decades, cities like Birmingham, Manchester and London have been talent hotspots, drawing in skilled professionals with exciting career opportunities, highly competitive salaries and vibrant lifestyles. In 2024 alone, 78% of UK professionals found themselves working in urban centres; reinforcing the long held trend of city-centric employment.

With businesses struggling to manage rising operational costs and recruitment challenges, more and more regional areas have become viable alternatives for skilled professionals. So how do businesses outside of major cities attract the best talent?

Here is a look at why working professionals stay in urban hubs, and the strategies employers can undertake to shift the narrative. 

Why top talent stays in cities

Major cities continue to dominate the UK’s job market, despite the climbing cost of living, increased congestion and housing shortages. Here’s why:

Career opportunities drive urban migration 

• Cities like Manchester, Birmingham and London are home to 80% of the UK’s high growth businesses.

• According to the Linkedin Workforce Report, 68% of UK professionals believe that career progression is easier to achieve in urban areas due to the higher concentration of industries.

• Finance, technology, manufacturing and healthcare roles in major cities offer higher salaries and frequent promotions.

Manchester has, for example, established itself as a major tech hub, increasing digital job vacancies by 35% in 2023; attracting skilled professionals who might otherwise consider regional areas.

‍Cities offer a higher quality of life (at a cost)

• Access to world-class healthcare, entertainment, childcare, and green spaces make cities appealing.

• 79% of professionals cite lifestyle factors as a key reason for staying in urban hubs.

• Public transport networks in major cities reduce car dependency, lowering commuting stress and environmental impact.

Yet there is a catch! The cost of living in London is 65% higher than regional towns, and rising housing costs are forcing young people to consider alternative employment options.

Centres of learning & innovation

• 50% of graduates choose to stay in the city where they studied due to stronger job markets.
• 79% of working professionals are citing lifestyle factors as one of the key reasons for staying in urban centres.
• Larger employers are investing in technology and employee training, giving urban workers a considerable edge in skill development.

The financial sector in London has allocated £4billion in digital skills training, reinforcing the city’s fintech dominance. 

Connectivity fuels growth

• Manchester’s public transport system moves 100 million passengers yearly, ensuring easy access to jobs. 
• Regional cities are well-connected by rail, air, and road, making them key hubs for professional mobility.
• Businesses benefit from expanded talent pools, as professionals can commute from neighboring towns.

Diversity & inclusion still matter

• Companies with diverse workforces are 36% more profitable than those without.
• Urban environments are highly multicultural, fostering innovation and creativity.
• 42% of UK job seekers prioritise inclusivity when choosing an employer.

How to Attract Top Talent to Regional Areas

To compete with bustling cities, regional employers must offer a compelling narrative to drive talent to suburban or more provincial areas.

Investing in training & development

• Upskilling programs improve retention by 30% and increase employee satisfaction dramatically.
• Offering over £300 per employee in training can lead to higher engagement and stronger workforce loyalty.
• Regional employers should partner with universities and apprenticeships to develop local talent pipelines.

Rolls-Royce has increased local talent retention in Derby by 45%; offering bespoke engineering apprenticeships as part of an ongoing training program.

Promoting a healthy work/life balance

• Remote friendly roles are known to attract as many as 60% more applicants over purely office based jobs.
• The average commute in London is roughly 74 mins per day; meaning that 17 full days are lost to travel each year.
• Businesses with flexible working models see a 25% reduction in resignations on average.

St Albans Council targeted professionals with "work closer to home" campaigns, reducing talent drain to London and increasing local employment.

Enhancing local infrastructure

• A staggering 34% of UK professionals say that poor access to healthcare would deter them from relocating.
• Workforce participation can increase by as much as 15% in regional towns by investing in better transport infrastructure.
• Creating cultural and social hubs, parks and co-working spaces can make locations and communities more attractive to both live and work.

The urban development strategy implemented in Milton Keynes has drawn in young people and fintech firms by upgrading public transport infrastructure and building co-working spaces.

Offering competitive compensation

• Matching (or getting close to) city salaries, while lowering living costs creates a financial advantage for young professionals.
• The affordability of housing in regional areas is 60% lower than in London, meaning that employees can afford better homes at the same salary.
• 20% of job seekers would favour a salary sacrifice for a better cost of living environment. 

The London living wage reflects higher cost of living in the capital, giving a worker in London and their family enough to afford the essentials and to save. Yet many firms are matching this in an attempt to compete for inner city top talent.

Cultivating diversity

• Businesses with higher internal diversity outperform direct competitors by as much as 25% in revenue generation.
• Flexible working policies allow underrepresented groups to enter the workforce and increase local employment.
• Regional businesses would do well to actively recruit diverse candidates and promote inclusive policies to attract a wider pool of talent.

The future of UK talent: cities vs. regional hubs

With the cost of living increasing and through the normalisation of remote working, regionally based businesses have a unique opportunity to challenge city dominance.

Employers must highlight quality of life benefits while making investments in local infrastructure and competitive salaries. Transportation, housing and flexible working will be the biggest magnets for attracting ‘city talent’ over the next five years. Businesses that adapt in the coming months and years will be the ones winning the war for talent; regardless of where they are located.

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