Economic inactivity remains key issue for the region – September’s employment figures
Date published:
Marianne O’Sullivan, policy manager at the Chamber, said:
The ONS employment figures released today (10 September) show economic inactivity remains a key issue for the region.
Between May and July 2024, the unemployment rate in the North East for those aged 16+ was higher than the UK average by 1.5%. The economic inactivity rate for people aged 16-64 in the North East remained higher than the UK average, by 4.4%. The region’s employment rate for those aged 16-64 was lower than the UK average, by 5.4%.
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 high rates of economic inactivity are a key issue for the north where around one in four of our workforce is economically inactive, often as a result of ill health or caring responsibilities. The Chamber’s submission to the government’s autumn Budget consultation highlights the need for health-related tax incentives for SMEs, which would enable them to provide access to additional healthcare and better occupational health support for their staff.
The British Chambers of Commerce’s Workplace Equity Commission, co-chaired by Gill Hunter from Square One Law in the North East, has published a report with a focus on creating equitable workplaces.
Health is identified as a key issue in the report, which highlights the need for more resource and capacity for the Access to Work scheme to ensure people get the help they need for adjustments in the workplace.
Childcare was also identified as a key barrier, with recommendations to address issues around staff pay and recruitment in the childcare sector, expand subsidised wraparound childcare support and a review of paternity leave. Employers providing flexible working arrangements where possible will allow people to balance work with health, caring responsibilities or other commitments.
The North East Chamber welcomes the Workplace Equity Commission’s report, and we will continue our focus on inclusive growth and best practise for employers as part of our stronger, fairer North East strategy.
Notes
- Official statistics under review published by the ONS suggest between May and July 2024, the unemployment rate in the UK for ages 16+ was 4.1%. In the North East this was higher at 5.6%.
- The UK’s employment rate for ages 16-64 was 74.8%. In the North East this was lower, at 69.4%.
- The UK’s economic inactivity rate for ages 16-64 was 21.9%. In the North East this was higher, at 26.3%.
- 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.