New ONS employment figures confirm rising 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 (13 May 2025) show that the North East now has the highest rate of economic inactivity in the United Kingdom at 28.4%. This means that over a quarter of working-age people in our region are not in work, nor actively seeking it – a stark reminder of the persistent challenges facing the North East economy.
The figures, covering the period January to March 2025, show that economic inactivity among those aged 16–64 has increased by 2.3% since last month’s dataset, the highest rise across the UK. Our regional inactivity rate now sits 7% above the national average of 21.4%.
Unemployment has also risen, with the rate for those aged 16 and over now at 5.1%, up from 4.8% last month. This places the North East 0.6% above the national average. Meanwhile, the region’s employment rate has fallen to 68%, the lowest in the UK.
While some volatility remains in the Labour Force Survey due to smaller sample sizes, today’s statistics make for sobering reading. They show that, in just a month, the North East has moved from having the highest economic inactivity rate in England to the highest in the UK. This further reinforces the need for sustained, joined-up action to address these long-term structural challenges.
The Chamber is committed to ensuring opportunity is embedded throughout our work with businesses, charities and partners across the region. Our newly formed workplace equity task and finish group is focused on broadening access to the labour market, with a particular emphasis on support, retention and sustainable workforce development.
We are also continuing to build stronger connections between business and education, placing opportunity at the heart of this work. The Chamber’s Local Skills Improvement Plans (LSIPs) are already delivering change, with new facilities, training programmes and course content shaped directly by employer needs. These efforts are helping to align the region’s skills system more closely with the demands of the labour market, boosting prospects for learners and employers alike.
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