Economic inactivity rises despite a slight reduction in the region’s unemployment rate.
Date published:
The ONS employment figures released today (17 December 2024) show that economic inactivity in the North East has risen despite a slight reduction in the region’s unemployment rate.
Between August to October 2024, the unemployment rate in the North East for those aged 16+ was 5.4%. This is higher than the UK average by 1.1%.
Increasing 2.4% from the rate reported last month, economic inactivity for those aged 16-64 remains high in the North East at 26.8%. This is 5.1% higher than the UK average of 21.7%.
The region’s employment rate for those aged 16-64 was 69.3%. This is 5.6% lower than the UK average at 74.9%.
The ONS has said there is still some volatility within its data collection method which is the Labour Force Survey due to small sample sizes. However, these figures still signal the North East’s higher rates of economic inactivity and unemployment overall.
Yesterday the government released the English Devolution White Paper, outlining the opportunity for integrated funding settlements for combined authorities and greater devolved powers relating to skills, planning, transport and housing. These enhanced powers will be critical for reducing barriers to work and economic inactivity in the region. They will enable the North East mayors to attract well-paying jobs to the region, create affordable housing and connect communities with to those opportunities through improved public transport.
The English Devolution White Paper also recognises the critical role of Local Skills Improvement Plans in creating targeted local strategies to best address regional skills shortages and economic inactivity. As deliverer of two of the region’s Plans we look forward to working with the region’s two combined authorities in partnership to create a stronger, fairer economy North East.
Notes
· Official statistics under review published by the ONS suggest between August to October 2024, the unemployment rate in the UK for ages 16+ was 4.3%. In the North East this was higher at 5.4%.
· The UK’s employment rate for ages 16-64 was 74.9%. In the North East this was lower, at 69.3%.
· The UK’s economic inactivity rate for ages 16-64 was 21.7%. In the North East this was higher at 26.8%.
· 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