More than one-in-four North East workers is 'economically inactive'

The North East has the country's highest rate of working age people outside the jobs market, with more than one-in-four classed as economically inactive.

The Office for National Statistics' (ONS) employment figures released today, Tuesday, February 13, shows the region has the highest economic inactivity rate in England.

North East England Chamber of Commerce policy advisor Callum George said the high proportion of people classed as economically inactive was a result of the region's long-term health issues: "Like the rest of the country, ill health remains the ultimate barrier to work in the North East," he said.

"However, disproportionate to many parts of the country, health inequality is a historic issue for the region. Solving this is not just of national interest, but it is crucial to delivering on levelling up

"In the coming months we will be speaking to our members about the issue of long term ill health in particular, as we don’t underestimate the important role that occupational health plays not just in helping people participate in work, but thrive in their workplace too."

"With the spring Budget due to be announced on March 6, we have once again submitted our members’ views to the government that more needs to be done to support people into work and training, and to level the playing field when it comes to accessing opportunities."

The ONS is currently treating the latest labour market releases as 'official statistics under review' due to difficulties in collecting data last year, which have led to a higher rate of inactivity than initially predicted, as well as a lower employment rate. Between October and December 2023, the unemployment rate in the North East was 4.3%, higher than the national average by 0.5%.

Economic inactivity in the North East was 25.4%, higher than the national average by 3.5%. The region’s employment rate 71.6%, which was 3.4% lower than the country as a whole.