UK Cities with the Lowest Unemployment Rates in 2021

An outline of the UK, with a range of students' photos overlaying it.

As students consider post-graduation employment, it’s important to remember that cities with a low unemployment rate can be good places to look for work. To attract the best people in a competitive market, companies may offer higher wages, more flexibility, or other benefits. Studying abroad in the United Kingdom? Look into the Graduate immigration route, which allows eligible international students to work in the UK for up to two years after graduating from any level of post-secondary study, or up to three years for PhD graduates.

Job seekers in 2022 across the UK have good reasons to be hopeful. According to the Office for Natural Statistics‘ most recent survey, the UK unemployment rate dropped to 4.3%, versus its June 2021 level at 4.8%. Over the same time, according to the survey, the UK employment rate “increased 0.4 percentage points on the [July to September 2021] quarter, to 75.4%. The quarterly increase in employment was driven by a record high net flow from unemployment to employment.”

While this is promising news in general, there are some cities where the labour market is especially welcoming to new grads with the right skills. Five of the top six are in England, and one is in Scotland. Find out which communities made the list according to 2021 statistics collected by UK think tank Centre for Cities. Read on!

 

A city street with tall red-brick buildings and a blue city bus on the road. (York, UK)

Image Credit: Nilfanion, CC BY-SA 4.0, via Wikimedia Commons

York

Unemployment Rate: 2.3%

Commonly recognized as one of the UK’s best cities to live in, York also welcomes over seven million visitors yearly and employs many people in tourism and arts-adjacent industries. As a hub on the nation’s rail network, with direct connections to every major city in England and Scotland, the railways are another major employer. York is also pioneering industrial biotech and agricultural research. Its academic institutions and industry opportunities attract scholars and researchers from around the globe.

Check out programs at the University of York International College on ApplyBoard’s Platform!

Exeter

Unemployment Rate: 2.7%

With a population of 128,900, Exeter is the capital city of the rural county of Devon, and a regional business hub. During work hours, its population swells by over 25% with daily commuters to the technology, utilities, education, retail, and engineering industries. 

While much of its ancient Roman wall is still visible, a nod to the city’s long history, Exeter keeps an eye on the future with award-winning research. (It also keeps an eye on the weather, with more meteorologists than any other part of the UK!)

A cityscape of Cambridge (UK): brightly coloured market stalls in the foreground, next to multi-storey brick buildings of different colours. City blocks and clock towers are visible in the background.

Image Credit: Kestreltail, CC BY-SA 2.0 UK, via Wikimedia Commons

Cambridge

Unemployment Rate: 3.0%

Known primarily as a university city, as students make up almost a fifth of its population, Cambridge‘s broader economy has seen significant increases in employment since 2015. Science and technology firms are seeing the fastest growth, particularly in IT, life sciences, and technology manufacturing. 

Cambridge is at the core of the Cambridge Cluster or Silicon Fen: the UK’s answer to Silicon Valley. It is home to over 1,500 science- and technology-based companies, including Arm, the world’s leading semiconductor IP company. This company has global reach: Arm’s microchips are in 95% of mobile devices! Local academic and research institutions are also growing, and employed over 37,000 people in 2021. 

Curious about studying abroad in the UK? We’ve counted down the top 10 UK universities for 2022.  

Edinburgh Castle surrounded by the city (glass and steel trainyards, brick cathedrals and government buildings, expanding out to smaller communities with homes. A large forest and tall hills are in the background.

Image Credit: Saffron Blaze, CC BY-SA 3.0, via Wikimedia Commons

Edinburgh

Unemployment Rate: 3.3%

Historically a centre for manufacturing, trade, and ship-building, Edinburgh became a financial centre in the 1800s, as well as the UK’s most important financial city outside of London, a position it has continued to maintain. Because of the presence of legal and academic institutions, printers followed. In fact, the Encyclopaedia Britannica was first published in Edinburgh!

Today, while education and financial services remain major employers, technology and retail have become major economic drivers. The Scottish capital also embraces the arts, and is famous for its festivals. Edinburgh’s summer festivals alone attract 4.4 million visitors every year.

Read about what studying abroad in Scotland might be like on our blog!

A pedestrian street in Aldershot, UK, with pubs, shops, and people walking.

Image Credit: Goose, Aldershot by Colin Smith, CC BY-SA 2.0, via Wikimedia Commons

Aldershot

Unemployment Rate: 3.3%

As the home of the British Army, history and military enthusiasts will find much to learn in Aldershot. In fact, during World War I, almost 20% of the British Army was stationed in Aldershot. The town is 50 kilometers southwest of London, and has large green spaces like Aldershot Park and Manor Park. While the town has a population of 37,226 and has a Victorian-era charm, the larger urban area is just over 243,000. The army remains one of the city’s major employers. Locals also find roles in education, tourism, and retail. Many also commute from Aldershot to positions in London.

Oxford, UK (a city scene, with parked red tour buses outside an impressive stone building (Queen's College). A cathedral spire towers over the buildings further down the street.

Image Credit: Diliff, CC BY-SA 4.0, via Wikimedia Commons

Oxford

Unemployment Rate: 4.4%

Known primarily for its academic strengths—the University of Oxford has held the top spot on the Times Higher Education’s World University Rankings for six years running—Oxford is also home to major manufacturing, publishing, health care, and transportation services. 

Its classical architecture is also a draw for the film industry: global blockbusters from Harry Potter to Saving Private Ryan were filmed in Oxford. Almost 44,000 undergraduate and postgraduate students attend the city’s two universities: the University of Oxford and Oxford Brookes. So, new grads looking at postgraduate study or to work in academia would be in excellent company here.

Fun Fact: The Mini Cooper, which rose to fame thanks to the 1969 movie The Italian Job, is manufactured in Oxford by BMW.


As you prepare to move into the workforce, keep these UK cities with low unemployment rates in mind. Each one offers its own set of benefits and could be a great place to start your career.

Start your study abroad journey: look at UK schools on the ApplyBoard Platform!

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