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North East Local Enterprise Partnership reaction to ONS regional labour market statistics

The North East Local Enterprise Partnership’s (North East LEP) Strategy and Policy Director, Richard Baker, has commented on today’s regional labour market statistics, released by the Office for National Statistics (ONS).

“As we mark the anniversary of the first lockdown, today’s data release is a timely reminder of the changes which COVID-19 has meant for our labour market. It provides the latest official data which includes regional employment information for the three months up to and including January 2021 and also annual comparisons.

“In the most recent months, the headline data has been stable. The employment rate in the North East region, which includes the North East and Tees Valley LEP areas, remains the lowest in England at 71.3 per cent, 0.1 percentage points higher than in the last quarter but 0.4 percentage points down on a year ago.

“The region has the second highest unemployment rate (6.2 per cent of the economically active) and the highest proportion of working age people who are economically inactive (23.8 per cent). Almost 30,000 workers in the region have been made redundant during the past year.

“However, some of the recent impact of COVID-19 has been masked by an increase in the use of furlough in the region. Over 114,000 North East employments were furloughed at the end of January, more than double the total of three months earlier. Most furloughed workers continue to be classified as employed in the official statistics.

“The impact on different groups in our population has been different. Younger people have experienced particular challenges both in employment and training and there have also been different patterns in the impact for men and women in the past year. The number of unemployed women has increased by 14 per cent, while male unemployment is lower (by about 8 per cent). Almost 52 per cent of furloughed workers in the North East at the end of January were female.

“The progress we are seeing towards the lifting of lockdown restrictions offers hope for the thousands of businesses unable to trade. Support for these businesses remaining under restrictions needs to continue.

“The North East LEP will continue to work with government as we look to drive forward our economy and address some of the key challenges which COVID-19 has created in our region.”

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Celebrating careers education in the North East during National Careers Week

Michelle Rainbow, Skills Director at the North East Local Enterprise Partnership, welcomes the start of National Careers Week 2021.

Today marks the beginning of National Careers Week, a celebration of the importance of good careers guidance, and the resources available to help students make more informed decisions about their futures.

Running from 01-06 March, it’s an opportunity to highlight the role careers guidance has in helping young people prepare for the world of work, as well as shining a light on the many and varied routes to employment.

National Careers Week is also about supporting teachers and educators to access the wealth of free resources available to help them deliver quality careers education in schools and colleges – something the North East LEP has been leading in our region through North East Ambition.

Finally, it provides businesses the chance to engage with students and the education sector about the employment opportunities available for young people within their organisations.

Throughout this week we’ll be highlighting the different ways the North East LEP is working in partnership with education and business to improve young people’s understanding of the world of work.

Each day we’ll focus on a different audience: primary, secondary, higher education, further education, and businesses. We’ll highlight some of the progammes and initiatives led by the North East LEP, and those by our partners in education and industry, that are helping young people make more informed choices about their future.

We’ll highlight the success of the LEP’s Career Benchmarks Primary Pilot, which is raising the aspirations and broadening the horizons of North East primary school pupils. We’ll also share details of North East Opportunities, a new website delivered in partnership with NP11 that provides information for students at school leaving age about traineeships, apprenticeships, T-Levels, further/higher education, and other academic and vocational routes to employment.

Underpinning National Careers Week is its alignment with the Gatsby Benchmarks. The North East LEP was instrumental in delivering the Good Career Guidance Benchmarks pilot in partnership with the Gatsby Foundation, and it’s fantastic to see the benchmarks are now central to the success of careers education in England.

Schools, colleges, universities and businesses are all invited to take part in National Careers Week. Join the conversation on social media using #NCW2021 and don’t forget to visit www.nationalcareersweek.com where you can download toolkits to help promote your involvement.

The North East LEP is proud to support National Careers Week and champion the amazing work done by our educators and business community to improve skills and opportunities for young people.

By helping our students better understand the employment opportunities available in the region – and the pathways to reach them – we will help create more and better jobs for the North East and grow our economy.

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North East Local Enterprise Partnership reaction to ONS regional labour market statistics

The North East Local Enterprise Partnership’s (North East LEP) Strategy and Policy Director, Richard Baker, has commented on today’s regional labour market statistics, released by the Office for National Statistics (ONS).

“Today’s figures continue to demonstrate the impact of COVID-19 on our economy with a continuing decrease in employment and a rise in the number of people claiming unemployment related benefits.

“The decision to extend the furlough scheme will protect many jobs for the future. However, it remains an uncertain time for businesses as a result of Covid controls and the need to continue to adapt to new processes following the Trade Deal with the European Union.

“It is essential that government continues to support the economy through the pandemic and invests to support the proposals in our COVID-19 Recovery Plan to enable us to drive forward our region’s recovery.

“The data released today covers the three-month period to November 2020. Employment continued to decrease during this time, both nationally and in the North East. The employment rate for the North East region, including the North East LEP and the Tees Valley LEP areas, was the lowest in England at 71.2 per cent. Both the unemployment rate and the number of working age people outside the labour market were much higher than they were between March and May 2020. The number of people being made redundant was at its highest level since 2009.

“In the North East LEP area, the number of people claiming unemployment-related benefits has increased by over 31,000 since March, with rates at 10 per cent in some areas. Employment in the region has fallen in most age groups, but the largest impact appears to have been on those aged under 25 and among 50 to 64-year-olds.

“These statistics include the November lockdown period but do not include the impact of the restrictions since Christmas.

“Strategic leadership and a strong partnership with government is more critical than ever – we will work closely with government to ensure that support for businesses is reflective of the need of our region.”

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North East Local Enterprise Partnership reaction to ONS regional labour market statistics

The North East Local Enterprise Partnership’s (North East LEP) Strategy and Policy Director, Richard Baker, has commented on today’s regional labour market statistics, released by the Office for National Statistics (ONS).

“Today’s figures show a national surge in unemployment as employers prepared for the end of the furlough scheme. The North East region now has the highest rate of unemployment in the country which is extremely concerning – especially as this month’s data does not yet take account the impact of the current tighter restrictions.

“The unemployment figure for the North East region, including the North East LEP and the Tees Valley LEP areas, was at 6.7 per cent at the end of September, compared to 4.8 per cent nationally. The North East LEP area has seen the number of people claiming unemployment-related benefits increase by over 60 per cent since March. A big concern is the large rise in younger people aged 16-24 not in employment across the UK.

“Our businesses continue to work hard to keep their teams together, but we are faced with a stop-start recovery, where ongoing support will be critical for business and for jobs. We welcome government’s recent decision extend the support available to the economy and will be monitoring its impact closely as we move into the winter.

“Strategic leadership and a strong partnership with government is more critical than ever – we need to ensure that support for businesses is reflective of the need of our region.”

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Funding on offer for North East employers to help young people into work

New funding from government is on offer to help employers in the North East create job placements for young people who might otherwise be at risk of long-term unemployment.

Applications are now open for the Kickstart Scheme, which offers employers of any size, and operating in any sector, funding to create new, six month job placements for young people who are currently receiving Universal Credit.

Michelle Rainbow, Skills Director at the North East Local Enterprise Partnership, explains: “The aim of this new scheme is to help young people gain the skills, confidence and experience that they need in order to go on and find work once they’ve completed their job placement.

“It’s not just a short-term measure. In the North East we really want to provide high quality job placements that will not only give young people experience of the workplace, but also give them valuable opportunities to learn and progress.”

Businesses that want to create 30 or more job placements can apply directly to the Kickstart Scheme via www.gov.uk. For businesses that plan to create fewer than 30 placements, the North East LEP will apply on their behalf, grouping applications to create clusters of high quality placements across a range of sectors in the North East.

Organisations of any size are eligible to apply, as long as the placements they are creating help young people to become more employable, for example, by helping them develop their skills in the workplace, by providing support with interview preparation and CV development, or by providing careers advice and help with goal-setting.

The funding on offer includes 100% of the relevant National Minimum Wage for 25 hours a week, plus associated employer National Insurance contributions and employer minimum auto-enrolment pension contributions. There is also £1,500 per job placement available for setup costs, support and training.

Employers can spread the start date of the job placements until the end of December 2021.

Michelle Rainbow added: “We know that young people, many of whom have finished school, college or university during the pandemic, are facing a difficult time and might have seen their plans for the future turned upside down.

“That’s why programmes like this are so important, and why we are working with North East employers to help give the next generation the best possible start in what is one of the most difficult times any of us have seen.”

For more information about the Kickstart Scheme visit www.northeastlep.co.uk/kickstart.

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North East LEP reaction to ONS regional labour market statistics

The North East Local Enterprise Partnership’s (North East LEP) Strategy and Policy Director, Richard Baker, has commented on today’s regional labour market statistics, released by the Office for National Statistics (ONS).

“Whilst today’s employment data continues to be dominated by the impact of the furlough scheme which is working to protect North East employment levels during this period, the data also shows the impact of declining levels of economic activity in the region, and risks for the future as the job retention scheme is phased out are also becoming clearer.

“The latest HMRC statistics show that 30% of workers in the North East LEP area that were eligible for furlough were being supported by the Coronavirus Job Retention Scheme (CJRS) by the end of June 2020. In addition, 76% of the eligible self-employed had claimed Self-Employment Income Support Scheme (SEISS) grants by that date. The take up rates have been similar to those for England and in total over 300,000 North East workers were supported by the end of June.

“Other data is beginning to show the impact of COVID-19 with a decline in earnings, increases in claims for universal credit and estimates of growth of unemployment benefits:

  • In the PAYE Real Time Information, median monthly pay in the North East region in the three months to June was 2.3% lower than in the three months to March. This was the fourth largest percentage decrease among the nine English regions.
  • The number of Universal Credit claimants in the North East LEP area has increased by over 70,000 (57%) between mid-March and mid-July. This benefit provides additional income for low paid workers as well as supporting those seeking employment and those unable to work due to sickness or caring responsibilities. In March, less than a third of claimants had been claiming for fewer than six months but, by mid-July, this had increased to almost a half. Overall the number of North East claimants had increased by a smaller percentage than in England as a whole (up 86%).
  • Today’s ONS estimate of the number of unemployment benefit claimants shows a rise of just under 36,000 (65%) between mid-March and mid-July in the North East LEP area. This compares with an increase across England of114%. As with Universal Credit, the percentage change in the North East was similar in all working-age groups, but highest among those aged 45 to 49 and 50 to 54 (up 70% and 68%, respectively).
  • Nationally ONS indicators suggest that the number of employees in the UK is down around 730,000 compared with March 2020. It highlights that the quarterly decrease in UK employment was particularly driven by decreases in the numbers of workers aged 65 years and over, self-employed and part-time workers.

“These trends are aligned with the reports from the Bank of England which showed a 21% decline in GDP in this quarter. Whilst in other reports, there is some suggestion that vacancies are beginning to grow slowly they have some way to go to return to levels from before Covid. It is important that support continues to be given to the labour market in the short term and that action is taken to stimulate the economy.

“The North East Local Enterprise Partnership (LEP), CBI, North of Tyne and North East Combined Authorities have come together, with the support of industry, to form the North East COVID-19 Economic Response Group to provide maximum support for businesses in the immediate term and to plan for long-term economic recovery following the COVID-19 outbreak and to ensure the region has strong and collaborative economic leadership as we work through the impacts of the measures introduced to slow the spread of the virus.

“By coordinating one response to the current economic crisis, we will use one voice and our collective influence to reassure the North East public, deliver crucial interventions and lobby Government.”

The North East Growth Hub is working hard to ensure businesses have access to all the latest information, guidance and support regarding Covid-19. This can be viewed here: https://www.northeastgrowthhub.co.uk/toolkits/covid-19-coronavirus-toolkit

Business are also being asked to complete this short survey to help us understand what support is needed and feed this back to government: https://www.surveymonkey.co.uk/r/COVID19_Business_Survey

ENDS

Notes to editors

About the North East Local Enterprise Partnership (North East LEP)

The North East Local Enterprise Partnership (North East LEP) is a public, private, education and voluntary sector partnership that covers Durham, Gateshead, Newcastle, Northumberland, North Tyneside, South Tyneside and Sunderland local authority areas.

 

 

 

 

 

Home / Employment

North East Local Enterprise Partnership reaction to ONS regional labour market statistics

The North East Local Enterprise Partnership’s (North East LEP) Strategy and Policy Director, Richard Baker, has commented on today’s regional labour market statistics, released by the Office for National Statistics (ONS).

“Looking at today’s regional labour market statistics, the most important factor to note is that government support schemes have helped keep a significant number of people in employment since March. Data from HMRC shows more than 250,000 people in the North East LEP area have been supported by the Coronavirus Job Retention Scheme, and a further 54,000 self-employed people received government grants.

“Going into lockdown, the data shows that the North East region’s labour market was making further progress towards bridging the employment rate gap with other parts of the country. However, we know that the labour market is severely disrupted and that this is not the current position for our region, and the 55% increase in the number of people claiming Universal Credit in the North East LEP area since March 2020 is a clear warning about future risks. Whilst numbers here may be lower than increases seen across England as a whole, they do highlight the reality of the situation for many people in our region.

“Unfortunately, standard ONS employment data does not currently provide the analysis we need to assess the overall current status of regional and local labour markets. Looking at the national level as an indicator, the data suggests that the UK has around 650,000 fewer employees on payrolls than in March 2020 and that, in June, there were approximately half a million employees away from their jobs specifically for coronavirus-related reasons that were receiving no pay while their job was on hold. 

“We cannot, therefore, come to a definitive view about the impact the coronavirus pandemic has had on employment figures. It will only be when government support packages end that we begin to see the true picture, and this combination of data shows the importance of a carefully designed approach to winding down Government support and the importance of boosting economic activity.

“The North East COVID-19 Economic Response Group, which was set up by the North East LEP, our Combined Authorities, Business and Universities to support the regions economy through the coronavirus pandemic, recently published a summary report highlighting its approach to help stabilise the economy. Protecting people’s jobs and supporting businesses to retain staff will be vital in the coming months, otherwise we can expect unemployment figures to rise significantly in the latter part of the year.”

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North East Local Enterprise Partnership reaction to ONS regional labour market statistics

The North East Local Enterprise Partnership’s (North East LEP) Senior Economist, Victoria Sutherland, has commented on today’s regional labour market statistics, released by the Office for National Statistics.

The data covers both the North East LEP and Tees Valley LEP areas and is for the final quarter of 2019.

“Employment has fallen, with 12,000 fewer people in work between October and December 2019 than in the previous quarter, and 13,000 fewer than in the same period in 2018. The sharp decline over the last quarter is disappointing news for the North East. It reflects part of a broader trend with the North East being one of four English regions (Yorkshire and the Humber, West Midlands, South West) to experience a decline in employment over the last quarter.

“Within this overall trend, the number of women employed has increased over the quarter by 7,000, while the number of men in employment has declined by 19,000. It is unclear at the moment what is driving these differing trends.

“Unemployment increased by 3,000 over the quarter and by 9,000 over the year, increasing the unemployment rate from 5.4% to 6.1%. The North East is the English region with the highest unemployment rate. Again, the trends differ across genders, with male unemployment increasing over both the quarter and the year, whilst female unemployment has fallen.

“Combined, these figures suggest the North East labour market is less strong than it was a year ago.

“It will be critically important that the North East Local Enterprise Partnership continues to work with partners across the region to deliver the Strategic Economic Plan’s ambition of more and better jobs. The Strategic Economic Plan is the region’s plan for delivering economic growth, but we cannot do it alone. We hope that the upcoming Budget prioritises those investments that partners in the region have highlighted to government as being important to driving growth in our economy.”

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In conversation with Neil Willis, Regional Lead, Education Challenge at the North East Local Enterprise Partnership

In conversation with Neil Willis, Regional Lead, Education Challenge at the North East Local Enterprise Partnership, reflecting on the impact Opportunity North East has had so far, and looking forward to its next phase.

For the past year, we (the North East Local Enterprise Partnership) have been working with colleagues from Tees Valley Combined Authority (TVCA) to develop a joint approach to support a strand of The Department for Education’s pioneering Opportunity North East (ONE) programme.

Designed to ensure all pupils have the same opportunities to learn, develop and achieve success, regardless of their background or where they live, Opportunity North East is an absolute determination that no child should be left behind.

It’s fantastic to see to see The Department for Education has unveiled its delivery plan for the next phase of Opportunity North East (ONE), which includes a £24 million investment to tackle the challenges facing some of our region’s lowest-performing schools.

This significant investment will mean we can continue to work in partnership with Tees Valley Combined Authority (TVCA) to ensure a consistent approach and maximum impact for young people across our region.

Since the programme began, we’ve worked with 28 ONE Vision schools to help identify the complex challenges and barriers that can hinder pupils’ success. This next phase will build on our work to date so we can provide even more support to all 28 schools.

Looking forward to the next phase

The latest Opportunity North East Delivery Plan sets out five main challenges that exist across the region. Our area of focus will be to lead work around Challenge 4, supporting our young people to find pathways to a good career.

Currently, the North East is the region with the lowest percentage of young people in a sustained education, employment or training destination after key stage 4 and key stage 5. That’s something we need to change.

To help us do that, we’ve worked with all 28 ONE Vision schools to understand how we can help make a difference to young people when it comes to securing employment, apprenticeships or moving to further education. Thanks to the feedback we’ve received, we plan to deliver an enhanced offer of careers and business engagement support for these ONE Vision schools, including plans for monitoring impact. Pupils will benefit from a programme of support that really makes a difference to their lives.

We’ll be working with partners including the Department for Education, our universities and local employers, as well as with our colleagues in Tees Valley, to collectively and intensively support up to 30 young people from each school into sustained education, employment or training.

Pupils will be supported from Year 9 right through to the end of Year 11. They’ll get access to high quality destinations guidance, personalised interventions and one to one guidance to support them in their next steps, including the opportunities available to them.

Our target is that by 2022, all ONE Vision schools will have achieved all eight Good Career Guidance Benchmarks and we’ll see an increased percentage of young people from those schools in a sustained education, employment or training destination after key stage 4 and key stage 5.

This, of course, is in addition to work we’re already doing through North East Ambition; supporting every school and college in the North East to achieve the eight Good Career Guidance Benchmarks, as well as through our Education Challenge and Ford Next Generation Learning Programmes – supporting teachers, school leaders and governors to integrate an understanding of the world of work and career opportunities into the curriculum.

We want each and every young person in our region to have the best possible start to their working life, and we are determined that no pupil will be left behind.

We can’t wait to get started on the next phase of this incredibly important work.