Chamber comment on employment stats
Date published:
The ONS employment figures released today shows a steep decline in employment regionally, whilst nationally employment is on the rise. Once again, regional gaps are widening.
Between October and December 2022, the unemployment rate in the North East for those aged 16+ was 0.8% higher than the national average. Similarly, the economic inactivity rate for people aged 16-64 in the North East remained higher than the national average, by 4.3%. The North East’s employment rate for those aged 16-64 was 4.6% lower than the national average.
In the North East, the employment rate has worsened by 0.5% compared to July-September 2022. Economic inactivity has also worsened by 0.5%, as has the unemployment rate has increased by 0.2%.
This is concerning for the North East, as nationally we are seeing vacancies sharply decline. Consequentially, for those who have left the labour market, it will be harder to re-enter the workforce both due to the number of jobs available, and increased competition.
Our Quarterly Economic Survey covering October to December 2022 shows that staff costs are North East businesses’ third highest concern. When you couple this with the fact that employment has fell, it could suggest that vacancies aren’t being filled, and instead businesses are looking to manage their outgoings.
One of Prime Minister Sunak’s five pledges for 2023 that he is openly happy to be judged on at the end of the year, is to grow the economy and create more high-wage jobs. If regional inequalities are not addressed as part of this, it would be a devastating blow for Levelling Up in the North East. We already know that the North East has a real strength in seizing opportunities, as last year we created more jobs through inward investment outside of London than any other English region.
What matters in the short term is that businesses are helped to survive the challenges they face. In our latest budget submission, we have called for the Government to work closely with OFGEM to make sure savings are passed directly to businesses should wholesale energy prices continue to fall. As a Chamber we will continue to explore ways in which we can best support and represent our members.
Notes
Data published by the ONS shows between October-December 2022, the unemployment rate in the UK for ages 16+ was 3.7%. In the North East this was higher, at 4.5%.
The UK’s employment rate for ages 16-64 was 75.6%. In the North East this was lower, at 71%.
The UK’s economic inactivity rate for ages 16-64 was 21.4%. In the North East this was higher, at 25.7%.