North East employment rate rises and economic inactivity falls – January’s employment figures
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Josh Maratty, policy advisor intern at the North East Chamber of Commerce, said:
The ONS employment figures released today (21 January 2025) show that the employment rate in the North East has risen and economic inactivity has fallen. However, the region still has a higher rate of economic inactivity compared to the UK average.
Between September and November 2024, the unemployment rate in the North East for those aged 16+ was 5.4%. This is higher than the UK average by 1%.
Decreasing by 1.3% from the rate reported last month, economic inactivity for those aged 16-64 remains high in the North East at 25.5%. This is 3.9% higher than the UK average of 21.6%.
The region’s employment rate for those aged 16-64 was 70.4%. This is 4.4% lower than the UK average at 74.8%.
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.
Ahead of the Comprehensive Spending Review announced by the government, we are working with our members to ensure their views are represented. There is a key opportunity in the North East for the government to work in partnership with businesses and build on the success of devolution to deliver inclusive regional growth. Investment in skills and infrastructure in the region will help to create jobs and increase the North East’s employment rate.
The Chamber’s latest Quarterly Economic Survey shows a mixed outlook for local businesses, with concerns around rising costs and workforce challenges. Though there are some positive signs, with progress in energy efficiency and part-time recruitment.
There have been some positive announcements in the region, with Nissan and Japan Automatic Transmission Company (JATCO) securing a £50 million investment to establish a new manufacturing plant in Sunderland. This partnership, backed by government support, will create 183 high-value jobs in the North East and support over 400 roles within the wider supply chain.
There is also positive news in the creative sector, with the government announcing £5 million in funding for a new glass-making facility in Sunderland and £5 million for a new Centre for Writing in Newcastle. The new writing centre is expected to support over 100 trainees and attract 35 creative businesses to the region.
These investments demonstrate a strong commitment to North East industry, but it’s clear that further government support is needed to drive continued growth in the region.