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.”