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.”