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Economic Development

Unemployment was falling in North East before coronavirus outbreak, new figures show

Analysts warn that good news on job numbers is likely to be wiped out by this time next month

A woman walking past a Job Centre(Image: PA)

Unemployment in the North East had reversed a recent trend and made a big fall before the coronavirus outbreak hit the economy, new figures show.

The region has emerged as an unemployment over the last 18 months, with rising joblessness figures coming at a time when record numbers of people are in work in most other parts of the country.

But the latest breakdown of regional unemployment from the Office for National Statistics (ONS) shows that unemployment fell by 0.6% in the three months from December to February, bringing the figure down to 5.6%. Unemployment in the region now stands at 72,000 after falling by 4,000 over the quarter and 3,000 over the year.

But the figures released cover the period when the economy was operating as normal and before the lockdown that has affected thousands of businesses.

It is likely that next month’s figures - and those for months to come - are likely to see an increase in joblessness, though it remains to be seen whether the North East will be more or less affected than other parts of the country.

Jonathan Walker, assistant director of policy at the North East England Chamber of Commerce, said: “The latest relatively positive employment statistics were drawn from data before the coronavirus had such a severe impact on our economy. Like our latest Economic Survey, they show how the region had begun to bounce back from all the Brexit uncertainty although the North East was still below the national employment figure.

“Our primary concern now is the next set of results which will lay bare the stark picture of how the current challenges have damaged our region. It has never been more imperative for Government to ensure businesses get all the support they need as quickly as possible.”

The North East’s unemployment rate is still significantly above the national average of 4% and the next nearest region, the West Midlands, where the rate was 4.8%.