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.