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Leeds has the third-largest jobs total by local authority area, with 480,000 in employment and self-employment at the beginning of 2015.Leeds is also the UK's third largest manufacturing centre with around 1,800 firms and 39,000 employees, Leeds manufacturing firms account for 8.8% of total employment in the city and is worth over £7 billion to the local economy.In 1904 the Leeds parish absorbed Beeston, Chapel Allerton, Farnley, Headingley cum Burley and Potternewton from within the borough.

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In the 17th and 18th centuries Leeds became a major centre for the production and trading of wool.Before the Industrial Revolution, it became a co-ordination centre for the manufacture of woollen cloth, and white broadcloth was traded at its White Cloth Hall.The railway network constructed around Leeds, starting with the Leeds and Selby Railway in 1834, provided improved communications with national markets and, significantly for its development, an east-west connection with Manchester and the ports of Liverpool and Hull giving improved access to international markets.Decline in manufacturing during the 1930s was temporarily reversed by a switch to producing military uniforms and munitions during World War II.

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However, by the 1970s, the clothing industry was in irreversible decline, facing cheap foreign competition.

On 1 April 1925, the parish of Leeds was expanded to cover the whole borough.

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