Strengthening North East job market

author: FutureCar Staff    

The labour market in the North East has shown a strong improvement over the past three months, with a significant increase in the number of people actively participating in the economy and finding work, according to the Office for National Statistics (ONS).

In the April-June period, the unemployment rate in the region remained unchanged at 4.2% compared to the previous quarter, while the national rate increased by 0.3% to also reach 4.2%. Interestingly, the North East now has a lower unemployment rate than other regions such as the North West, the West Midlands, the East, London, and Wales.

During the same period, the regional economic inactivity rate, which represents people who are not working and not actively seeking employment, decreased by 1% to 21.9%. This decrease was the most significant among all regions, except for the West Midlands and Wales. In comparison, the UK average only fell by 0.1% to 20.9%.

Moreover, the employment rate in the North East rose by 1%, the second-highest increase after Wales, bringing the regional rate to 74.7%. Although the national average experienced a slight decrease of 0.1%, it remains higher at 75.7% compared to the regional rate.

These positive trends in the North East's labour market are noteworthy as they represent the lowest economic inactivity rate and highest employment rate since 1992. The number of people in employment has increased to 1,262,000, compared to 1,202,000 a year ago, while economically inactive individuals have decreased to 357,000 from 405,000.

Callum George, from the North East England Chamber of Commerce, commented on the ONS figures, acknowledging the progress made in employment and economic inactivity rates. However, he highlighted the ongoing challenges faced by businesses in terms of recruitment.

George stated, "Our most recent economic survey indicates that businesses are becoming increasingly concerned about their workforce. Although the North East's labour market has improved significantly compared to last year, employers still face real challenges due to economic inactivity."

He further emphasized the importance of a compassionate and supportive approach to reintegrating people into the workforce, considering that the ONS reports record-high levels of individuals out of work due to long-term ill health.

Looking ahead to the Chancellor's Autumn Statement, the North East England Chamber of Commerce is collaborating with its members to gain a deeper understanding of the challenges faced by employers, particularly in recruitment. They plan to provide pragmatic recommendations that benefit both businesses and the people residing in the North East.

FutureCar Staff