Number of people in paid employment in Sunderland falls as UK unemployment hits five year high

The number of people in paid employment in Sunderland has fallen for the second consecutive month when compared to the same periods last year.

The latest figures from the Office for National Statistics (ONS) showed than for January 2026 the number of employees on payroll in Sunderland was 118,451, down -0.1% on the same month last year (2025).

Employment rates in Sunderland have fallen.placeholder image
Employment rates in Sunderland have fallen.

This follows on from ONS figures published last month (January) which showed the number of people in Sunderland in paid employment in December 2025 was down -0.4% compared to December 2024.

Commenting on the figures, WageSight director and employment expert Paul Hebden said: “Although employment in Sunderland remains lower than a year ago, recent month-on-month figures suggest some stabilisation in recent months.

“Whether this marks a genuine turning point or a temporary pause in job losses will become clearer over the next few months.”

Figures published from the ONS showed in the last three months of 2025, the UK’s unemployment rate hit 5.2, the highest rate in almost five years.

Young people are being particularly hard hit with unemployment for those aged between 16 and 24 rising to 16.1%, its highest in more than 10 years.

Pat McFadden, the secretary of state for work and pensions, said the government remained focused on getting young people into work.

He said: “Our £1.5bn drive to tackle youth unemployment is a key priority and this month we announced that we’ll make it easier for young people to find and secure an apprenticeship, which comes on top of our investment to create 50,000 new apprenticeships.”

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