New figures from the Office for National Statistics (ONS) reveal continued challenges in the North East’s labour market.
Between June and August 2024, the unemployment rate for those aged 16 and over in the North East stood at 5.6 percent, significantly higher than the UK average of 4 percent. The region also reported an employment rate of 70 percent for ages 16-64, falling short of the UK’s national rate of 75 percent.
The economic inactivity rate, which includes those not in work and not actively seeking employment, reached 25.7 percent in the North East, compared to the national figure of 21.8 percent. This gap in economic engagement highlights persistent issues that the region faces in both unemployment and inactivity.
Response from North East Chamber of Commerce
Marianne O’Sullivan, policy manager at the North East Chamber of Commerce, commented on the figures, noting that the region continues to face higher-than-average unemployment and inactivity rates. She said, “The unemployment rate in the North East for those aged 16+ was 1.6 percent higher than the UK average at 5.6 percent. The economic inactivity rate was 3.9 percent higher than the UK average at 25.7 percent. These figures highlight the ongoing challenges the North East faces compared to the rest of the country.”
O’Sullivan pointed out that the volatility in the Labour Force Survey due to smaller sample sizes may influence the exact numbers, but the trend remains concerning for the region.
The government’s recently published Industrial Strategy has underscored the importance of boosting regional growth through support for key sectors such as advanced manufacturing, clean energy, creative industries, and digital technologies. O’Sullivan added, “Support for the North East’s key growth sectors was one of the Chamber’s election asks to create important new job opportunities in the region.”
Future Focus on Skills and Employment
As part of its strategy to tackle these issues, the government has committed to a renewed focus on skills and employment, with a white paper expected in the coming months. This paper aims to outline measures to support people back into work and reduce economic inactivity across the UK.
O’Sullivan emphasised the Chamber’s commitment to collaborating with local authorities and organisations, including Skills England, to ensure that the right employment support is available in the North East. “We will be working closely with the mayors, government, and Skills England to ensure that we have the right skills and employment support in the region to allow local people to access these job opportunities,” she stated.
Regional Disparities and the Path Forward
The North East continues to face significant disparities compared to the rest of the UK in terms of employment and economic inactivity. With unemployment and inactivity rates consistently higher than the national average, the region requires targeted interventions to boost job opportunities and bring more people into the workforce.
The government’s focus on regional growth through the development of high-growth sectors offers a potential path forward. By creating new opportunities in industries such as advanced manufacturing, clean energy, and digital technologies, the North East could see improvements in both its employment rate and levels of economic inactivity. However, achieving these improvements will require a coordinated approach, with a strong emphasis on skills development and job creation.