ONS Archives - North East Local Enterprise Partnership

The North East Local Enterprise Partnership’s Chief Executive, Helen Golightly OBE, has commented on today’s regional labour market statistics, released by the Office for National Statistics (ONS).

The release includes data for the North East statistical region for the three-month period of May to July 2023. The region includes the North East LEP area and Tees Valley.

Helen Golightly OBE, Chief Executive of the North East Local Enterprise Partnership (North East LEP), said: “Despite a rise in the headline unemployment rate in the latest figures, the North East labour market continues to perform well, with both our employment and economic inactivity rates significantly improved on a year ago. That’s testament to North East businesses, who have performed remarkably, even in the face of wider uncertainty.”

The May to July employment total in the North East region was more than 49,000 higher than in the same period of 2022. The working age employment rate increased by 2.7 percentage points over the year, from around 71.4% to 74.1%, the largest increase among the nine English regions. The rise in employment was accompanied by a decrease of about 55,000 in the number of working age economically inactive people, who had been absent from the labour market a year earlier. The number of unemployed people in the North East increased by just over 9,000 in the year.

Helen Golightly continued: “The longer term figures give us cause for cautious optimism, but we need to keep a close eye on the latest figures to see whether the increase in unemployment is short term volatility or the start of a less positive trend. We know businesses are facing significant headwinds – including inflation, which is likely to remain high, and the expectation of further interest rate rises.

“As a region where retail is a hugely important sector, we also know the difficulties faced nationally by Wilko will be echoed for others in the industry, and the recent news of job losses and store closures will create a big hole in many of our regional high streets. It’s a reminder of how important it is to continue to support our local town centres and to focus on building the right environment for businesses to succeed, both now and for the long term.”

Further labour market analysis can be found on the North East Evidence Hub.

The release includes data for the North East statistical region for the second quarter of 2023 (March to June). The region includes the North East Local Enterprise Partnership (North East LEP) area and Tees Valley.

Helen Golightly OBE, Chief Executive of the North East LEP, said: “The North East jobs market has made incredible progress over the past year. Today’s data shows that employment in the North East region has increased by over 60,000 in the past 12 months. Although still lower than England as a whole, the working age employment rate is at its highest level since comparable records started over thirty years ago. The North East unemployment and working age economic inactivity rates are at their lowest levels.”

“It’s particularly pleasing that almost three-quarters of the increase in the North East’s employment in the last year has been due to increased female employment.”

“But we know there are still issues to address. Employment among male workers aged 25 to 34 and 50 to 64 decreased over the year, there has been a continued increase in long term sickness, and last week’s publication of the Local Skill Improvement Plan for North of Tyne tells us there are still skills gaps which need addressing.”

“The improvement we’ve seen is testament to North East businesses, who continue to create jobs in the face of difficult economic conditions. For our part, we at the North East LEP remain committed to supporting the creation of more and better jobs in the region, and we’ll be working to make sure improvements are felt across the region, that the voice of business is heard as we prepare for greater devolution in the North East, and that the region’s firms have the best possible environment in which to thrive.”

Further labour market analysis can be found on the North East Evidence Hub.

The release includes quarterly data for the North East region for the three-month period March to May 2023. The region includes the North East LEP area and Tees Valley.

Helen Golightly OBE, Chief Executive of the North East Local Enterprise Partnership (North East LEP), said:

“These figures show a continuation of the good news from last month, with our region’s unemployment rate falling at the fastest rate in the country, and remaining below the UK average, while our economic inactivity rate is also falling. All together this means there are nearly 55,000 more people in work in the region than a year ago.

“Our employment rate is still low, but improvement has meant it now matches that of London at 74.5% of the working age population, while our unemployment rate is the joint third lowest in England, matching the North West and beaten only by the South West and the East Midlands.

“But, it’s important for us to remember these headline figures are just a snapshot and there is plenty of work still to be done. While our employment rate for women matches the English average, employment amongst North East men is far below average. Equally, despite the progress we’ve made, our economic inactivity figure is still the highest in England.

“A tight labour market with low unemployment also brings different challenges for employers, and can make it difficult to find the right talent for their teams. At the LEP we’ll stay focused on working with our partners to deliver more and better jobs across the region, because it’s only through that collaboration and laser focus that we can improve the environment for businesses in the region.

“We need to work together to get people back into the labour market, and address big issues like skills shortages, the health of our workforce, and unlocking the economic potential of the pursuit of net zero.”

The release includes quarterly data for the North East statistical region for the three month period February to April 2023. The region includes the North East LEP area and Tees Valley.

Helen Golightly OBE, Chief Executive of the North East Local Enterprise Partnership (North East LEP), said: “Today’s figures show that, in the latest quarter, the North East region’s unemployment rate was below the English average for the first time since comparable data started being collected over 30 years ago.

“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.

“At the North East LEP, we’re focused not just on jobs, but on more and better jobs so 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).

The release includes quarterly data for the North East statistical region for the first quarter (January to March) of 2023. The region includes the North East LEP area and Tees Valley.

Helen Golightly OBE, Chief Executive of the North East Local Enterprise Partnership (North East LEP), said: “These figures contain some really positive news for the region’s jobs market. Almost 38,000 more people are in work in the region than a year ago, and we’ve seen a big shift from economic inactivity into employment over the past three months.

“But, underneath the headlines, there are some indicators which suggest the improvements are not being spread evenly across the workforce – the rise in employment rate was much higher for women than it was for men and, in fact, the employment rate actually fell for men aged 25 to 49.

“We also know that nationally the falls in economic inactivity were largely driven by younger people aged 16 to 24, and that long term sickness has reached record highs. We can expect those trends to be echoed in the North East figures when they become available.

“These are tough times for business, and a rise in planned redundancies reflects broader economic uncertainty and the impact of rising costs. As a region we need to celebrate the positive progress that has been made, but keep working hard to make sure we have a fit, productive workforce with the right skills to enable our businesses to thrive.”

Further labour market analysis can be found on the North East Evidence Hub.

The release includes quarterly data for the North East region for the three-month period November 2022 to January 2023. The region includes the North East LEP area and Tees Valley.

Helen Golightly OBE, Chief Executive of the North East Local Enterprise Partnership (North East LEP), said: “The data released today shows encouraging signs of progress in the region’s labour market over the past 12 months. The latest regional employment total is over 25,000 higher than a year ago and the employment rate has increased by more than the England equivalent. In addition, the unemployment rate has fallen by more than in any other region.

“However, there is work to be done to close the gap further as the North East still has the lowest regional employment rate and the highest working age economic inactivity rate, where people are neither employed nor seeking work. It is a concern that the number of economically inactive people has only fallen slightly in the last year despite the increased employment total.

“Additionally, we need to ensure that employment increases across the entire North East workforce. Experimental ONS data suggests that the rise in employment in the last year in the North East has been concentrated among older females and younger males.”

See further labour market analysis on the North East Evidence Hub.

Today’s release includes quarterly data for the North East region (for the period October to December 2022). The region includes the North East LEP area and Tees Valley.

Helen Golightly OBE, Chief Executive of the North East Local Enterprise Partnership (North East LEP), said: “The data released today takes us to the end of 2022, and shows there was rapid slowing in the labour market in the North East in the three months before Christmas, after previous progress across the year. The North East was not alone in this trend, with other regions seeing similar patterns. A distinctive feature of this data is the relative decline in the position of men, with many leaving the labour force over the year, whilst women’s employment increased.

“We remained at the bottom of the table for overall employment and unemployment rates. Although the formal unemployment rate fell, our ongoing concern about people leaving the labour force altogether was reinforced as we saw the third highest increase in the working age inactivity rate over the year amongst the nine English regions.

“This is likely an indication of the ongoing pressures in the economy given the impact of higher costs of living, and follows on from the data we reported in the previous month’s figures showing a drop off in demand for goods and services amongst consumers, and for labour amongst smaller businesses.

“Looking at some of the key points of detail, compared with the same period in 2021, total North East employment increased by 9,400 and unemployment was 14,600 lower. However, working age economic inactivity in the region was about 16,600 higher. Much of the increase in employment was amongst people aged over 65.

“Other experimental regional labour market estimates by age group suggest that in the North East, compared to a year earlier, the largest increases in employment have been among women aged 25 to 34 and 50 to 64, whilst the largest decreases have been among males aged 25 to 34 and 35 to 49. Meanwhile, the largest increases in inactivity have been among men aged 35 to 49 and 50 to 64, and among women aged 16 to 24, while there has been a large increase in unemployment among males aged 25 to 34.”

Today’s release includes quarterly data for the North East region (for the period September to November 2022). The region includes the North East LEP area and Tees Valley.

Helen Golightly OBE, Chief Executive of the North East Local Enterprise Partnership (North East LEP), said: “The data released today shows that there has been an annual growth in employment of 1% and quarter increase of 0.4%. Whilst the North East remained at the bottom of the tables for overall employment and unemployment rates, we saw the second largest annual improvement in both these indicators amongst the nine English regions.

“We are seeing more people coming out of economic inactivity and into the labour market, with similar numbers finding work and moving to unemployed status, and actively seeking employment.

“This is probably an indication of the impact of higher costs of living with inflation at its highest level in recent years and people feeling the need to find ways of increasing their income.

“We can also see a drop off in demand for goods and services and for labour amongst businesses, particularly in smaller businesses. The latest regional vacancies data shows that online job adverts in the North East are only 5% higher than their pre-COVID benchmark, compared to 31% higher in November 2022. This indicates a declining confidence amongst businesses in the recruitment of new staff and will likely have contributed to an increase in those claiming out of work benefits in December.

“At this time, when people and businesses are focused on the cost of living and costs of doing business, it is notable that PAYE data released today saw pay rises averaging 6.4%. This was failing to keep pace with inflation caused by price increases in products including food and energy, which in real life terms sees a further net drop in incomes of 2.6% for the third quarter in a row. Private sector pay growth nationally was running at 7.2% compared with just 3.3% in the public sector.

“As we progress through the winter, the cost of living will continue to be an issue of concern for residents and employers and is likely to continue to impact on sectors of the economy which rely on discretionary spending. For example, entertainment and transport were the sectors which had seen the largest decline in employment in this quarter.”

Access all the latest labour market information on the North East Evidence Hub.

Today’s release includes quarterly data for the North East region (for the period June to August 2022). The region includes the North East LEP area and Tees Valley.

Helen Golightly OBE, Chief Executive of the North East Local Enterprise Partnership (North East LEP), said: “The data released today shows the labour force in the North East is following a similar pattern to the rest of England.

“It is a cause for concern that both nationally and in the region we have seen the number of people in employment fall, unemployment fall and further growth in the number of people becoming economically inactive – where they are not looking for work.

“There is also evidence of a decline in the previous high rate of vacancies in the economy, with a particular impact on recruitment amongst small businesses employing fewer than 50 people.

“Nationally and regionally the labour market is slowing. There are currently 71.2% of people aged 16-64 in work, but the region still hasn’t recovered to pre-COVID levels of employment.

“At this time, people and businesses are focused on the cost of living and costs of doing business given rises in inflation and interest rates.

“PAYE data which has been released today shows that nationally employee pay continues to increase at a rate of 5.4% (excluding bonuses), at a time when costs of living in areas like energy and food are increasing at a higher rate. National data suggests that the impact on real terms pay is a decrease of about 3%. As we head into winter this will be an issue of great concern for both residents and employers.

“We welcome the decision by the Chancellor to bring forward the planned budget statement to the end of the month as it is clear that the economy requires ongoing support to return to sustainable growth and to provide support to businesses and residents through current uncertainty.”

Access all the latest labour market information on the N orth East Evidence Hub.

Tag: ONS

North East LEP reaction to ONS regional labour market statistics

North East LEP reaction to ONS regional labour market statistics

North East LEP reaction to ONS regional labour market statistics

North East LEP reaction to ONS regional labour market statistics

North East LEP reaction to ONS regional labour market statistics

North East LEP reaction to ONS regional labour market statistics

North East LEP reaction to ONS regional labour market statistics

North East LEP reaction to ONS regional labour market statistics

North East LEP reaction to ONS regional labour market statistics