Research by the Centre for Cities think-tank revealed that London accounted for 80% of national private-sector employment growth between 2010 and 2012.
For every public-sector job created in the capital, two have been lost in other cities, the study found.
While London is booming, cities such as Glasgow, Bradford and Blackpool have seen jobs lost in the private and public sectors, said the report.
However, a significant number of jobs have been created in private firms in Edinburgh, Birmingham and Liverpool, which has helped offset the impact of public-sector job cuts.
In the two years to 2012 there were 216,000 private-sector and 66,300 public-sector jobs created in London, compared with losses of 7800 and 6800 in Glasgow, the report said.
Other cities where jobs have been created in private companies included Nottingham (8900), Brighton (6400) and Aberdeen (4900), but they were all hit by cuts in public-sector employment.
The report said: "London remains the UK's economic power house and is pivotal to the UK's future success."
Alexandra Jones, Centre for Cities chief executive, said: "The gap between London and other UK cities is widening and we are failing to make the most of cities' economic potential.
"Devolving more funding and powers to UK cities so they can generate more of their own income and play to their strengths will be critical to ensuring this is a sustainable, job-rich recovery."