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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 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.”

Home / unemployment

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 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.

Home / unemployment

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.”

Home / unemployment

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.”

Home / unemployment

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 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.”

Home / unemployment

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, and covers the period September – November 2021.

“Today’s statistics make for difficult reading. The North East region’s latest employment rate was at 70.5%, which is by far the lowest in England. We’ve seen consistently over the previous three quarters that the number of people in work has fallen and that the number of people who have left the labour market and are categorised as economically inactive has increased. Significantly, the unemployment rate – this is people who don’t have a job, but are actively looking for work – has increased to a level that exceeds London, something we’ve not seen since September 2020.

“We are doing further analysis of these figures to understand the detail behind these changes, but it is clear that whilst other regions are moving ahead as they recover from COVID-19, the North East continues to face labour market challenges. 

“We are expecting the Government’s Levelling Up White Paper to be published and it is clear that this is increasingly urgent to better understand how Government want to work in partnership with the North East to support us with our economic recovery to address these gaps and avoid further economic imbalance.”

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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)*.

“The latest data covers the March to May period, during which some COVID-19 restrictions were eased. Despite these changes, the overall labour market picture remained relatively unchanged on the previous (December to February) quarter with both the employment and unemployment rates remaining the same. 

“The North East continues to have the lowest working-age employment rate (72.0%) among the nine English regions and the second highest unemployment rate (5.8% of the economically active). The region also has the highest proportion of people who are economically inactive (23.6%).

“ONS continue to innovate with new data approaches to provide more up to date intelligence to support assessment of the economy, for example, a new experimental measure of payrolled employees. This suggests a more positive picture with the latest monthly estimate showing there was an increase of almost 12,000 payrolled employees in June. This is encouraging and we will monitor how this new data set develops given it is subject to revision and excludes information about self-employed workers.

“Beneath the general figures, COVID-19 continues to have an impact on the working lives of many people in the North East region and appears to be exacerbating inequalities. Whilst people were securing new jobs and there is growth in vacancies, about 4,400 workers experienced redundancy in the latest quarter, more than twice the total in the previous quarter and bringing the total to over 32,000 since March 2020. The latest data shows a particular impact on women in the North East with female employment falling by 3,600 in the latest quarter, in contrast to a 2,800 increase among males.

“Job seekers claimant count data provides indications of the variations of unemployment within the North East LEP area. At constituency level, the rates range from 2.8% in Hexham to 9.0% in South Shields.

“At the end of May, almost 63,000 workers in the North East LEP area were still furloughed, with workers in food and accommodation services still making up almost a quarter of this figure. Manufacturing accounted for 11,000 of the furloughed workers, a total that did not drop during those three months. 

“This provides a strong rationale for the ‘Levelling Up’ agenda with support needed to the North East as a whole and for places within the region. Over the longer term, our Recovery Plan sets out proposals to drive forward our vision of a more sustainable, competitive and inclusive regional economy. As the Prime Minister outlines the next steps with for the Levelling Up strategy, 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 to seek investment into these proposals.”

*The official data released today includes employment information based on surveys in three month period March to May 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 and job seekers claimant count numbers for June 2021. The regional data has been revised to take account of improved population estimates.