Continued action required to tackle economic inactivity in the North East
Date published:
Jessie Kelly Baxter, Senior Policy Advisor at the North East Chamber of Commerce, said:
The ONS employment figures released today (10 June 2025) show that the North East continues to have the highest rate of economic inactivity in the United Kingdom at 28.1%. While slightly lower than last month’s figure, over a quarter of working-age adults in our region are still not in work or actively seeking employment. This is a sobering reminder that the North East economy continues to face ongoing challenges in engaging and retaining its workforce.
The figures cover the period from February to April 2025 and show that economic inactivity for those aged 16–64 has decreased by 0.3% compared to last month. While this is welcome, our regional inactivity rate remains 6.8% above the UK average of 21.3%. Although some volatility remains in the Labour Force Survey due to smaller sample sizes, today’s statistics continue to highlight that the North East’s economic activity levels are a point of concern.
Unemployment levels have decreased by 0.1% for those aged 16 and over and now stand at 5%. While this is a move in a positive direction, the figure still sits 0.4% above the national average. The employment rate also continues to be the lowest in the UK, with 68.2% of working-age adults in employment. While we know our region is a good place to work, and devolution is bringing new opportunities and funding, these figures highlight the importance of continued, integrated action to overcome persistent structural barriers.
The Chamber is committed to ensuring more individuals across our region are included and supported in the workforce. This month, we concluded our Workplace Equity Task and Finish Group, resulting in a strong set of actions and recommendations that we hope will make a tangible difference in helping people access and thrive in the North East labour market.
This is why our Knowledge Programme is focused on ‘people’ for 2025. Addressing economic inactivity starts with understanding and tackling the barriers individuals face when entering, staying, and progressing in work. This July, we will also welcome businesses, charities, and other key stakeholders to an Inclusive Employment event that will explore what it means for businesses to embed inclusive recruitment practices.
Our continued work on two of our region’s Local Skills Improvement Plans (LSIPs) will also soon see the launch of an Inclusive Recruitment toolkit. This will support businesses across the North East to recruit from a more diverse pool of candidates in more equitable and inclusive ways.
We are North East business, and we will continue to support, connect and represent our members. Through collaboration with our regional partners and the national government, we can tackle economic inactivity and drive growth for a stronger, fairer North East.