Economic inactivity remains high in the region – August’s employment figures
Date published:
Marianne O’Sullivan, policy manager at the Chamber, said:
The ONS employment figures released today (13 August) show persistent high levels of economic inactivity in the region.
Between April and June 2024, the unemployment rate in the North East for those aged 16+ was higher than the UK average, by 0.4%. The economic inactivity rate for people aged 16-64 in the North East remained higher than the UK average, by 5.2%. The region’s employment rate for those aged 16-64 was lower than the UK average, by 5.5%.
The ONS is still undergoing new ways of measuring employment and has warned against being too reactive to these figures. It’s more important than ever to take a forward-looking approach of what can be done to improve our region’s labour market, rather than focus on what the official figures suggest.
We know that there are key barriers to accessing employment in the region including ill health, poor local transport links and a lack of childcare. We also need to ensure local people have the right skills to access jobs in the region.
Our quarterly economic survey for quarter 2 of 2024 showed that labour costs were a key concern for businesses with a slight decrease in recruitment for full time and permanent positions. This has been reflected nationally with the number of vacancies declining.
The government has committed to publish a white paper focused on tackling economic inactivity which will look at options including new work, health and skills plans led by mayors and local areas. Proposed reforms to the apprenticeship levy will also aim to encourage businesses to upskill and reskill their staff.
Economic inactivity remains a key issue for the region, at the Chamber we will continue to focus on the role that businesses can play in investing in people and the role of occupational health. We will also be consulting with our members as we get more detail on government proposals to tackle economic inactivity.
Notes
- Official statistics under review published by the ONS suggest between April and June 2024, the unemployment rate in the UK for ages 16+ was 4.2%. In the North East this was higher at 4.6%.
- The UK’s employment rate for ages 16-64 was 74.5%. In the North East this was lower, at 69%.
- The UK’s economic inactivity rate for ages 16-64 was 22.2%. In the North East this was higher, at 27.4%.
- The ONS continues to use experimental data following issues with data collection earlier this year and in 2023, 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.