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 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 North East Evidence Hub.