Despite inactivity falling, unemployment creeps higher in the North East
Date published:
Josh Maratty, policy adviser at the North East Chamber of Commerce, said:
“The ONS employment figures released today (19 March 2026) show that between November 2025 and January 2026, the unemployment rate in the North East for people aged 16 and over was 7.1% (compared to 7% last month) – now 1.9% higher than the UK average.
“Economic inactivity among those aged 16 to 64 was 24.4%, a decrease of 1.3% compared with the previous month. While this still means around one in four working-age adults in the North East is economically inactive, the rate remains 3.7% higher than the UK average, underlining the scale of the challenge the region is facing.
“The employment rate for those aged 16 to 64 rose to 70.1% from 69% the previous month, which is now 5% lower than the UK average. Despite the increase in employment, the North East lags significantly behind the rest of the UK.
“The UK jobs market continues to cool gradually, with an estimated 721,000 vacancies recorded in December 2025 to February 2026, a modest fall of around 6,000 (0.8%) from the previous quarter.
“The longer-term picture tells a clearer story of softening demand. Compared to a year earlier, vacancies are down by 76,000, or nearly 10%, with 15 out of 18 industry sectors seeing declines. While the pace of change remains relatively measured on a quarter-by-quarter basis, the broad-based nature of the annual drop suggests a sustained and widespread easing of hiring activity across the UK economy.
“This morning’s ONS labour market statistics arrive only weeks after the Chancellor set out her Spring Statement. Together they serve as an important moment to take stock of where the economy stands.
“The Statement was clearly designed to reinforce stability rather than introduce significant new policy, and businesses across our region cautiously welcomed the government’s focus on predictability in fiscal policy and its consistent approach to the public finances, particularly given what the Chancellor herself described as an uncertain global environment. But stability alone is not a growth strategy.
“While the government is on track to meet its borrowing rule and has increased its fiscal headroom, warm words are not enough. Firms across the North East need to see those positive macro-economic signals translated into stronger, sustained growth on the ground. Investment, productivity and job creation cannot be left waiting.
“That is why the North East Chamber of Commerce’s policy team has been actively contributing to the Milburn Review, providing evidence-based feedback centred on the conditions needed to drive economic growth across our region. Drawing on the views of our members and wider stakeholders, we have set out the key barriers holding back business and made the case that unlocking the North East’s economic potential must sit at the heart of any serious agenda for expanding opportunity.
“We welcome the review’s ambition and look forward to seeing our contributions help shape recommendations that deliver tangible, lasting growth for businesses and communities across the North East.
“On behalf of our members and stakeholders, we will continue to press for the measures that unlock investment, support sustainable job creation and ensure the North East plays its full role in driving national growth.”
Notes
- Official statistics under review published by the ONS suggest that between November 2025 and January 2026, the unemployment rate in the UK for ages 16+ was 5.2%. In the North East, this was higher at 7.1%.
- The UK’s employment rate for ages 16-64 was 75.1%. In the North East, this was lower, at 70.1%.
- The UK’s economic inactivity rate for ages 16-64 was 20.7%. In the North East, this was higher at 24.4%. – The ONS continues to use experimental data following issues with data collection, which made employment figures unavailable for a period. For more details on the ONS’ switch from experimental data to official statistics under review, please click here.