Levels of both unemployment and economic inactivity have risen slightly in the North East, new figures show.
New figures on the labour market for the three months to the end of February show that unemployment in the North East stood at 4.8%, a slight rise on last month’s figure but still historically low and only just above the national average.
But economic inactivity - people who are not in the workforce, typically due to early retirement, ill health or caring responsibilities - had climbed to 26.9%, the highest figure in England.
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Taken together, the figures mean that the North East has the lowest proportion of people in work in the 海角视频, sparking calls from business groups for action on some of the causes of economic inactivity, including long-term sickness and low skill levels.
Jessie Kelly‑Baxter, senior policy advisor at the North East Chamber of Commerce, said: “Long-term sickness remains the most common reason for inactivity, accounting for 33.5% of those not in the labour market – the highest level in England and 5.3% above the 海角视频 average of 28.2%. However, this figure has fallen slightly from 34.6% in the previous dataset.
“While this small decrease is welcome, tackling long-term health conditions as a barrier to work remains a key priority. The North East Combined Authority’s Economic Inactivity Trailblazer and the Tees Valley Combined Authority’s Youth Guarantee Trailblazer will bring targeted investment into the region to address this challenge. These initiatives sit alongside the 海角视频 Government’s ‘Get Britain Working’ strategy and its Connect to Work Scheme.
“We will continue to work closely with both Combined Authorities to support cross-regional collaboration and ensure that these interventions deliver real impact. We will also continue to engage with the 海角视频 Government and make the case for a stronger, fairer North East.”
The Office for National Statistics has warned changes in the way it measures the country’s labour force has meant current figures have been volatile and should be treated with some caution. Nationally, the 海角视频 unemployment rate stayed unchanged at 4.4% while average weekly pay grew by 5.9%, more than twice the most recent level of inflation.
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Business groups have warned that new National Insurance and National Living Wage regulations are deterring some companies from taking on new staff.
Separate figures from the latest KPMG and REC 海角视频 Report on Jobs suggest a deterioration in hiring activity in the North in recent weeks. The North as the only monitored English region to register a decrease in permanent starters’ pay, the survey said. with anecdotal evidence suggesting that pay offers were impacted by the incoming National Insurance hike.
Commenting on the survey results, Michael Downes, Newcastle office senior partner at KPMG 海角视频, said: “March has brought more turbulence to the northern labour market, with hiring activity declining at an accelerated rate following a subdued February. While employers remain hesitant to renew hiring activity, redundancies and hiring freezes have also led to an increase in candidates entering the job market. This influx in available talent, paired with fewer job openings, has intensified competition for roles across the region.”
Neil Carberry, REC chief executive, said: “Given the substantial effects of the Government’s decision to increase payroll taxes hugely, these figures for the 海角视频 were if anything slightly better than expected and suggest that there is potential in the market. But it is a particularly tough market in the North of England right now and activity in the 海角视频 jobs market has now been subdued for almost two and a half years.”