North East unemployment rises as inactivity and employment gap persist
Date published:
Josh Maratty, policy adviser at the North East Chamber of Commerce, said:
“The ONS employment figures released today (16 September 2025) show that between May and July 2025, the unemployment rate in the North East for people aged 16 and over was 5% – 0.3% higher than the UK average.
“Economic inactivity among those aged 16 to 64 was 27.9%, a fall of 0.3% compared with the previous month. However, this remains 6.8% higher than the UK average and continues to be a key challenge for the region’s sustainable growth.
“The employment rate for those aged 16 to 64 was 68.3%, which is 6.9% lower than the UK average.
“These figures underline why tackling economic inactivity and closing employment gaps are central to the Chamber’s new Policy Plan, Unlocking the North East Economy. The plan builds on our 2023 Stronger, Fairer North East strategy and reflects the priorities of our members, gathered through extensive engagement, including conversations, surveys and Area Meetings.
“Our members have consistently called for a stronger regional voice, accelerated reforms and tangible action to address local challenges. The new Policy Plan responds to this by setting out a clear vision to unlock the region’s full economic potential and ensure businesses are represented at the heart of government decision-making.
“Through our extensive network, we will work with partners to support the creation and sustainability of quality jobs with strong social value. Our place-based approach focuses on driving high-value, sustainable growth across sectors such as renewable energy, advanced manufacturing, life sciences, digital technology and artificial intelligence. Crucially, the strategy is designed to ensure opportunities are spread fairly across urban, rural, coastal and inland communities.
“By amplifying member priorities and tackling the barriers highlighted in today’s figures, Unlocking the North East Economy will help create the conditions for the region to thrive as a dynamic and inclusive economic powerhouse.
“Together, we will continue to unlock the North East economy – because we are North East business.”