"The growth is in part down to the area's push to support high-tech manufacturing and advanced engineering, particularly in the defence industries.
"Growth in these sectors is something the council is working hard to accelerate, along with other public and private sector organisations in the area.
"The new Centre for Maritime Intelligent Systems on Portsdown Hill, and the city's bid for a University Technical College, are both major steps to ensure continued growth."
The report, released today (Mon) defines Portsmouth as an area including Fareham, Gosport and Havant boroughs as well as the city itself. It says private sector jobs in the area increase by 4,300, or 2.9%, between 2012 and 2013, putting Portsmouth 13th out of 63 other UK locations.
It also says real wages increased by 4.4% between 2013 and 2014, putting Portsmouth in sixth place.