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.”