Jayne Rouse, manager of Jobcentre Plus in Leicester, said: "We have a buoyant market with manufacturing on the increase, particularly in textiles and hosiery with people coming back from the Far East."
One Leicester-based garment manufacturer to benefit from the switch is Basic Premier. The firm started out three years ago with 20 staff. Today is employs 93 people.
Mick Cheema, general manager of Basic Premier, said: "Leicester is the main centre for textiles manufacturing in the UK when it comes to fashion. We can deliver an order in two weeks and this is a big advantage for fashion retailers."
Basic Premier produces clothes for several UK companies including Asda, Top Shop, Tesco, River Island and Sainsburys.
Real wages in Leicester rose by 2.8 per cent in the year to the end of July, in line with national figures.
Unemployment fell 25 per cent over the same period in Leicestershire from 3,163 to 2,364.
The number of women in work across Leicestershire was 70.7 per cent, higher than the national figure of 68.7 per cent.Chris Hobson, director of policy for East Midlands Chamber, which covers Leicestershire, Derbyshire and Nottinghamshire, said: "Job creation is a really important part of economic growth and it's great to see that the East Midlands is still one of the leading regions in the country in this regard."