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North East LEP reaction to ONS regional labour market statistics

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 data updates on key indicators within the Strategic Economic Plan. Today’s release includes quarterly data for the North East region (for the period April to June 2022). The region includes the North East LEP area and Tees Valley.

Helen Golightly OBE, Chief Executive of the North East Local Enterprise Partnership, said: “The data released today shows little change from the position last month. There has been a small increase in the working age employment rate over the last quarter, but a small decline in total employment for all age groups. More working age people have joined the labour force and are looking for work, which has led to a small rise in the unemployment rate, alongside a slightly larger decrease in the economic inactivity rate.

“Nationally, the labour market appears to be slowing. There is some evidence of a decline in the high rate of vacancies in the economy, with a particular impact on recruitment amongst small businesses employing fewer than 50 people.

“But the main focus at the moment will be on standards of living. PAYE data which has been released today, shows that the region’s median employee pay continues to increase at a similar rate to nationally, at a time when costs of living in areas like energy and food are increasing, leading to a real terms decrease in regular pay of about 3%. 

“We can surmise that the relatively static situation in the labour force is caused by ongoing uncertainty in the economy, with employers and employees waiting to see how the economic situation changes and how public policy develops in response. Without intervention, we can expect a difficult economic situation for local communities and businesses over the coming months with increasing prices impacting on costs, investment and employment.” 

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

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North East LEP reaction to ONS regional labour market statistics

The North East Local Enterprise Partnership’s Strategy and Policy Director, Richard Baker, has commented on today’s regional labour market statistics, released by the Office for National Statistics (ONS). The data updates on key indicators within the Strategic Economic Plan. Today’s release includes quarterly data for the North East region (for the period March to May 2022). The region includes the North East LEP area and Tees Valley. 

Richard Baker, Strategy and Policy Director at the North East Local Enterprise Partnership, said: “The data released today shows that recent employment trends in the North East region have continued to improve, with an additional 11,600 people in employment compared to the previous quarter and a larger increase in the employment rate than nationally. 

“The statistics also show a decrease in the region’s economic inactivity rate during the last quarter that is larger than nationally, and a continuing high level of labour market demand. However, there remains a challenge to ensure the North East labour market is working for all age groups with younger and older workers not securing employment at the same rate as other groups.

“PAYE data shows that the region’s median employee pay is increasing at a similar rate to nationally (up by 5.3% in the year to May 2022), which is faster than the pre-COVID trend, but tracking below inflation.

“Whilst it’s encouraging to see positive changes continue into this quarter, our economy continues to face challenges, particularly around the tightness of the labour market for employers and cost of living for residents. We can expect continuing volatility over the coming months and there will continue to be a need for support for business in navigating these headwinds and for families and communities facing increasing prices.”

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North East LEP reaction to ONS regional labour market statistics

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

Helen Golightly OBE, chief executive of the North East Local Enterprise Partnership, said: “The data released today paints a slightly more positive picture than the last month with an additional 10,500 people in employment. We have seen improvement in the employment rate across the country and it’s encouraging to see the North East moving at a slightly quicker rate than the national average in this period.

“Older and younger men and women of all ages were the groups who re-entered the labour market during this quarter.

“We should however approach this month’s data with caution as the labour market remains volatile as the economy faces significant challenges with large increases in inflation and the cost of living continuing to rise. It is likely that these factors will have an impact on the labour market in months to come and we must continue to monitor these changes closely and respond accordingly.”

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North East LEP comment on ONS labour market statistics

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

Helen Golightly OBE, chief executive of the North East Local Enterprise Partnership, said: “This month’s figures show a large increase in employment in the North East, with the total rising by almost 13,000 compared to the previous quarter.

“This increase is largely due to an increase in workers aged over 65. The position in other age ranges and on other key indicators we follow remains largely unchanged.

“We have seen continued growth in the number of payrolled employees, but this data excludes self-employed workers so provides an incomplete picture of the labour market. We have a continuing and distinctive challenge with North East unemployment and working age economic inactivity rates both being the highest in the nine English regions. The latter measures people who are not in work or actively seeking employment.

“Yet, employers in some of our key sectors like transport, digital and construction are struggling to find people with the right skills.

“This is a crucial and urgent conundrum for us to solve. As we face a future of higher living costs, a clear focus on helping people to secure higher paid and skilled employment will be good for our residents, build business confidence and be good for the region’s economy.”

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North East LEP reaction to ONS regional labour market statistics

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). 

Today’s statistical release includes quarterly data for the North East region (for the period December 2021 to February 2022). The region includes the North East LEP area and Tees Valley Combined Authority area.

Also included in the release are statistics for the North East LEP area and its local authorities for the calendar year of 2021. 

Helen Golightly OBE, chief executive of the North East Local Enterprise Partnership, said: “This month’s figures show the position in the North East economy is largely unchanged from the last quarter.  

“There has been a recent small increase in the number of people working in the region, with about 2,300 more people in employment than in the previous quarter, and there was also a decrease of 4,900 in unemployment. However, the working age employment rate has fallen slightly, suggesting that much of the employment increase was among workers aged 65 plus. 

“The North East employment rate remains the lowest among the nine English regions, with the unemployment rate and working age economic inactivity rate both being the highest. The latter measures the number of people not in work or actively seeking employment.

“And progress in the past year has not matched other areas of the country. As we recover from COVID-19, the North East is the only region with a significantly lower employment rate than a year earlier, and the largest increase in the economic inactivity rate over the period. 

“Looking at local data for the last year, employment in the North East LEP area decreased more for women than men, and we have seen increases in economic inactivity across all working age groups in the North East. There has been a large growth in numbers citing looking after family or home as a reason for inactivity. 

“However, there is an opportunity to do more to benefit the economy and boost employment, with employers continuing to report demand in the labour market and difficulties in recruitment. 

“Energy prices, along with a range of other price rises, are going to increase costs for families and we urge government to focus invest into the North East to encourage more progress in the labour market.”

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North East LEP reaction to today’s regional labour market statistics

Today’s statistics cover the North East region, which includes the North East LEP area and Tees Valley Combined Authority area. The headline rates cover the period November 2021 to January 2022.

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).

“This month’s figures suggest we are seeing tentative signs of improvement compared with figures from the last quarter, with the number of people in employment increasing by over 7,000.

“There have also been a number of people who have moved from being economically inactive, where they are not looking for work, to economically active, where they are making themselves available for work.

“However, we should remain cautious and vigilant about these figures. Today’s statistics also shows that our labour market continues to face long term challenges with the highest unemployment rate, the highest percentage of people who have left the labour market and the lowest rate of people in work in England – whilst other regions are moving ahead as they recover from COVID-19.

“Other data shows there is an opportunity to do more. Employers are reporting continuing demand in the labour market and difficulties in recruitment, and yesterday’s over 50s lifestyle study suggests that further encouragement for older workers who have left the labour market since the start of the pandemic could see them return.

“There are now 18,000 more 50 to 64 year olds who are classified as economically inactive in the North East region compared to before COVID-19. 39% of over 50s who have left the labour market nationally would consider returning to work, including 58% of 50-59 year olds, but they would need the right conditions and support to do so.

“At a time when the costs on families from general inflation and energy price rises are increasing rapidly, we urge government to strongly and urgently focus on the needs of the North East to encourage more progress in the labour market.” 

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

Today’s statistics cover the North East region, which includes the North East LEP area and Tees Valley Combined Authority area. The headline rates cover the period October to December 2021.

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). 

“Today’s statistics give us a post furlough picture for the first time. They show that there wasn’t significant disruption at the end of the furlough scheme, but the North East continues to struggle, particularly because of rising levels of economic inactivity where people have left the labour market and are no longer looking for work. 

“We have seen a decrease in unemployment, which would usually be good news as it means that there are fewer people looking for work, but in the last year, instead of moving into employment, people looking for work have moved into the economically inactive category.  

“The latest data does not show the reasons for increased inactivity, but it does highlight a particularly large decrease in employment among North East women in the last year, which is concerning. 

“The number of people claiming unemployment related benefits in the North East LEP area shows a monthly rise that is 6,000 higher than at the start of the pandemic. It’s the first time we have seen a rise since February 2021.  

“We should also be concerned as this data reflects the trajectory in other recent data. The latest regional export data for Q3 2021 saw the value of North East exports decline for the third consecutive quarter. North East exports are now 7% lower than they were two years ago. 

“We urge government to strongly focus its levelling up agenda on the needs of the North East. It is clear that whilst many other regions are moving ahead as they recover from COVID-19, the North East continues to face labour market challenges. 

“We believe levelling up the economy is the right thing to do, but the time is now to invest in the places that need it the most.”

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

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).  

“Today’s statistics cover the North East region, which includes the North East LEP area and Tees Valley Combined Authority area.

“For the third month in a row we have seen a decrease in the employment rate, meaning there are fewer people in work, but more significantly, an increase in the economic inactivity rate, which is the number of people who have left the labour market and are not actively looking for work. This has increased more than any other English region and the gap between the North East and the next English region (Yorkshire and the Humber) is significant.

“The North East region has an additional 33,000 working age people who are inactive compared to the same period in 2020. Recent increases in inactivity have been particularly large among the youngest workers, but there have also been increases among those aged 35 to 64.

“There is more work to do to understand the detail behind these changes, but it is now apparent that because the North East region has the highest inactivity rate across all regions in England, we need to work with government to ensure a swift implementation of the Skills White Paper and to ensure the Levelling Up White paper is published and progressed early in 2022 with no further delays.”

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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)*.

Richard Baker said: “We’re now starting to see the shape of the labour market in the region as the economy moves out of Covid-related restrictions and support.

“The overall picture in today’s figures is of a labour market which is in recovery, but with a changed structure since early 2020. This recovery is tentative, with other data showing a slow-down in recent growth, the influence of other factors such as skills shortages in a number of sectors, and the need for support for workers to adapt to the changing demands of the labour market. There is some way to go to return to the pre-pandemic position.

“The latest regional employment data release covers the May to July three month period, during which some Covid-19 restrictions were eased. The ONS has also released experimental payroll data which provides more up to date data and also new data that provides the first statistics for local areas for a period entirely after the start of the Covid-19 pandemic (Apr 2020-Mar 2021).

“During May-July, the number of people aged 16 and over in employment in the North East region increased by over 7,000 compared to the previous quarter, although the total is still 18,000 less than in the same period during 2020. The number of unemployed people decreased by 12,000, compared to the previous quarter. The data suggests that some of this decrease was due to people leaving the labour market.

“The experimental pay roll measure shows an increase of 2,500 in the number of payrolled employees in the North East LEP area in August, and the total is now 7,500 higher than in March 2020. This source does not cover all people in employment, excluding, for example, self-employed workers.

“Comparing the newly released employment totals in the North East LEP area for the April 2020-March 2021 period with those a year earlier shows the impact of Covid-19 on self-employed and part-time workers in the area. 

“The overall decrease in employment of 10,000 (1.1%) was driven by a fall of over 17,000 in self-employment. Among the area’s part-time workers, employment decreased by 9,500, compared to a drop of 500 in the number of full-time workers. 

“Overall, the North East continues to have the second highest regional unemployment rate (5.3% of the economically active) among the nine English regions. The region also has the highest proportion of 16 to 64-year olds who are economically inactive (23.9%).

“At the end of July, about 41,000 workers in the North East LEP area were still furloughed, representing about 5.2% of all eligible employees. About 22% of these furloughed workers were in manufacturing, with 16% in food and accommodation services and most of the rest in other service sectors. More than half of furloughed workers in the North East region were on partial furlough, highlighting the gradual return to pre-Covid levels of employment.

“This data shows that there are opportunities to drive forward, but a number of challenges which need ongoing stimulus to the economy and support for individuals and businesses. The North East LEP will continue to work with Government and our partners to provide support to our regional economy as we work through the recovery phase and to seek investment into the proposals in our Recovery Plan to help accelerate our recovery.”

*The official data released today includes employment information based on surveys in three month period May to July 2021 for the North East region, which includes the North East and Tees Valley LEP areas. It also includes experimental estimates of payrolled employee numbers for August 2021 and LEP area data for the 12 month period April 2020-March 2021. The data has recently been revised to take account of improved population estimates.