North East unemployment rate falls - but region still trails rest of the UK

Data published by the Office for National Statistics shows the North East unemployment rate was 4.1% between November 2022 and January 2023, compared to a national figure of 3.7%.

The national employment rate for ages 16-64 was 75.7%, but just 71.8% in the North East, while the UK’s economic inactivity rate was 21.3%, compared to 24.9% closer to home.

More to do

North East England Chamber of Commerce policy adviser Callum George said while the news was encouraging, there was still work to do on the Government’s levelling-up agenda and a lot would hinge on what was contained in tomorrow’s spring budget announcement: “The figures show a slight upturn in employment regionally, outperforming national employment growth. With that being said, regional gaps remain.

“Compared to the previous quarter, in the North East, the employment rate has improved by 0.6%. Economic inactivity has also improved by 0.3%, as has the unemployment rate, by 0.6%,” he said.

“When you consider the significant investments in the region that will create more jobs, in the long term we hope that they can drive a real shift in momentum for employment in the North East.

What’s needed

"Already this year we’ve had the positive news of FulwellCain Studio’s plans to create 8,000 jobs in filmmaking, amongst other critical private sector investments.

“What’s now important is we can match the right skills to vacancies in the area, to ensure that employment is fulfilling and long term.

"Looking ahead to Chancellor Hunt’s Budget tomorrow, it will be crucial people are not just encouraged back into work, but are also supported adequately in doing so. This means addressing challenges such as childcare, health inequalities and training; which we called for in our budget submission at the start of the year.

“With everything going on in our region - be it devolution or private investment - there’s a clear appetite for ambition in the North East. It’s critical that our regional ambitions are matched by policies designed to support people back into work.”