The annual report, called State of the City, measures the city's performance in a number of key areas, such as employment and quality of life. As well as the recent employment growth, it predicted that another 100,000 jobs will be created in the next 15 years.

Moreover, the number of people choosing to live in the city of Manchester grew by one per cent a year between 2001 and 2005, which is twice the national average.

The report also found that life expectancy is increasing; pupils' performances at GCSE level are improving at a faster rate than the UK average; and crime has fallen by more than a fifth since 2003.

City council leader Sir Richard Leese said he is working closely with partners to realise the vision of a city where people are wealthier and happier.

"We will maintain our focus on ensuring that residents gain the maximum benefit from the city's economic success," he added.

A recent report by inward investment agency Midas revealed that among the companies that have created jobs in Greater Manchester over the past 12 months are Sainsbury's, Arista Insurance, and global banking firms Handelsbanken and Macquarie.