The number of people in the North East classed as being ‘economically inactive’ has risen to one of its highest level in more than 20 years.
New figures from the Office for National Statistics show that the proportion of people in the region classified as economically inactive - people not working due to ill health, caring responsibilities or early retirement - has reached 28.3%.
That figure was significantly higher than any other region, highlighting the region’s unique challenge in getting people able to work. The ONS figures also showed that the region’s unemployment rate had fallen to 4.4%, below the national average, but taken together it means that the North East has the lowest number of people actually in work.
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The ONS has been warning about the volatility of its employment statistics for some time. But business groups say that high levels of ill health are holding back the regional economy.
Josh Maratty, policy advisor at the North East Chamber of Commerce, said: “Between March and May 2025, the unemployment rate in the North East for those aged 16 and over stood at 4.4%, which is 0.3% below the 海角视频 average. However, economic inactivity among those aged 16 to 64 increased by 0.2% from the previous month, reaching 28.3%.
“This remains 7.3% above the 海角视频 average and underlines an ongoing challenge for the region. The employment rate for those aged 16 to 64 was 68.5%, which is 6.7% lower than the 海角视频 average.
“The newly released data also highlights the reasons behind economic inactivity in the North East. Although covering April 2024 to March 2025, this data provides valuable context. Long-term sickness continues to be the most common reason for people being out of the workforce, accounting for 33.6% of the inactive population. This is 5.2% higher than the 海角视频 average of 28.4% and is the highest level in England.
“The 0.1% increase in long-term sickness from the previous dataset may appear small, but it reflects a persistent issue that demands attention. Tackling ill health as a barrier to work must remain a priority, and we welcome initiatives such as the North East Combined Authority’s Economic Inactivity Trailblazer and the Tees Valley Combined Authority’s Youth Guarantee Trailblazer, alongside the 海角视频 Government’s ‘Get Britain Working’ strategy. The Chamber will continue to work with both combined authorities to promote collaborative, region-wide solutions.”
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Nationally, Britain’s jobless rate has struck its highest level for four years, increasingly slightly to 4.7%. Average earnings growth, excluding bonuses, slowed to 5% in the period to May to its lowest level for almost three years, but is still ahead of inflation.
The figures point towards further pressure in the 海角视频 labour market, days after the governor of the Bank of England warned that the Bank is prepared to make larger interest rate cuts if it sees that the job market slowing. It also comes amid a backdrop of recent weakness in the economy, with 海角视频 GDP shrinking in both April and May.