North East jobless rate rises ahead of national figure again

The North East unemployment rate has again outstripped the national figures.

Just two months ago, the proportion of over-16s classed as actively looking for work in the region fell below the national figure for the first time since comparable figures started being collected more than 30 years ago.

But a rise in the North East rate last month saw the figures equalise - and now the region has again fallen behind, with the latest Office for National Statistics (ONS) employment figures showing a sharp increase in unemployment.

Between May and July 2023, the unemployment rate in the North East for those aged 16+ was 0.9% higher than the national average.

Compared to the previous quarter, in the North East, the employment rate fell by 0.3%, whilst the unemployment rate rose 1.6%. The region’s employment rate was 1.4% lower than the UK figure.

The proportion of people in the region classed as economically inactive - neither in work nor actively seeking employment - fell by 0.8 per cent but remained higher than the UK as a whole.

Compared to the previous quarter, in the North East, the employment rate has decreased by 0.3%, whilst the unemployment rate has increased by 1.6%. However, the economic inactivity rate has decreased by 0.8%, showing that more people are available to work in the labour market. 

North East England Chamber of Commerce policy adviser Callum George said the new figures were not all bad news: "In the first half of the year, the North East’s labour market has improved significantly compared to where we were last year; sometimes in spite of unemployment rising nationally.

"Whilst today’s figures show a widening of gaps in employment and unemployment that need to be addressed, compared to this time last year, the North East has seen the largest increase in employment out of any region in the UK.

"Despite the statistics showing the North East’s improvements on the year, it is only right to acknowledge that businesses are still facing relentless issues when it comes to recruitment and retention. This has a financial impact on businesses, but also affects the workload and wellbeing of existing workers.

"The ONS reports that nationally, inactivity due to ill health continues to hit record highs month-on-month. The most recent regional data shows that the number of people inactive due to ill health is at its highest levels in over 15 years.

"Historically, ill health has been a regional issue for the North East; placing an urgent need for policymakers to target occupational health.

"As we prepare for the Autumn Statement, it’s clear that there is still work to be done to support people back into work, and help those that find new employment thrive in the workplace.

"To best represent North East business, we are currently consulting our members on the issues their businesses - and the communities they serve locally - face."