North East unemployment drops below national average for first time ever

The North East unemployment rate has dropped below the national average for the first time since comparable figures started being collected more than 30 years ago.

But the region still lags behind the rest of England when it comes to the proportion of the working age population actually in work or classed as economically inactive.

The latest Office for National Statistics (ONS) employment figures show the unemployment rate in the North East UK for over-16s was 3.6%, compared to 3.8% nationally.

But the UK-wide employment rate was 76%. In the North East, it was 74.4%.

Nationally, 21% of people were classed as economically inactive, compared to 22.7% locally.

North East England Chamber of Commerce policy adviser Callum George commented: "The figures show the region has seen continued improvements in employment in the last quarter, so much so that our unemployment rate is actually lower than the national average..

"With that being said, economic inactivity remains a regional challenge. Although we’re seeing real signs of improvement, the North East still has the highest levels of economic inactivity in England.

"Compared to the previous quarter, in the North East, the employment rate has improved by a significant 2.5%. Economic inactivity has also improved by 2.3%, as has the unemployment rate, by 0.5%.

"This continues last month’s trend of the North East seeing the biggest reduction in economic inactivity, as well as the biggest employment growth in the UK.

"While inactivity due to ill health remains at record highs, a large proportion of those returning to work are those who have previously been inactive due to caring for their household. This could suggest the cost of living is forcing families to consider additional work.

"For businesses, the tightness in our regional labour market is probably set to continue. There is still work to be done to help employers attract new pools of talent, such as the successful rollout of subsidised childcare, and expansion of occupational healthcare subsidies for SMEs."

North East Local Enterprise Partnership Chief Executive, Helen Golightly OBE welcomed the news: “There are over 50,000 more people in work in the region than a year ago and the unemployment rate for women in the North East was the lowest of all nine English regions.

"Over the past 12 months, we’ve seen the biggest increase of any region in our overall employment rate and the biggest falls in unemployment and economic inactivity rates.

“But, the progress that these statistics represent is not yet shared throughout all workers - the North East’s male employment rate was the lowest among the regions, for example.

“There’s also lots we don’t know yet, including whether high national levels of long term ill health are mirrored in the region or how much of the fall in unemployment is driven by underemployment and part time work when people would rather be working full time.

“We’ll be keeping a watchful eye over the next few months to make sure this positive news translates into well-paid, productive jobs in the key sectors which will unlock long-term economic growth for the North East.”

Further labour market analysis can be found on the North East Evidence Hub (www.evidencehub.northeastlep.co.uk).