One in four working-age adults economically inactive in the North East, as the region falls further behind the UK average
Date published:
Josh Maratty, policy adviser at the North East Chamber of Commerce, said:
“The ONS employment figures released today (20 January 2026) show that between September and November 2025, the unemployment rate in the North East for people aged 16 and over was 6.2% – 1.1% higher than the UK average.”
“Economic inactivity among those aged 16 to 64 was 26%, an increase of 1% compared with the previous month. While this means one in four working-age adults in the North East is now economically inactive, the rate is 5.2% higher than the UK average (compared to 4% last month), underlining the scale of the challenge facing the region.”
“The employment rate for those aged 16 to 64 fell by 1.3% to 69.2%, which is now 5.9% lower than the UK average (compared to 4.4% last month). This reversal highlights how fragile progress in the labour market can be, and the importance of sustained action to support participation and job creation.”
“While these figures show the scale of the challenge, they also reinforce the need to remove the barriers that prevent people from entering and remaining in work. Through our Local Skills Improvement Plans (LSIPs) and ongoing engagement with employers, transport continues to be identified as a key obstacle to economic participation, particularly for those living in more isolated or poorly connected communities.”
“In this context, the Chamber welcomed the Chancellor’s Northern Growth Strategy announced last week, particularly the focus on investment in the development work for the Leamside Line. This represents an overdue vote of confidence in the North East and a meaningful step towards improving connectivity, widening access to employment and supporting long-term economic growth.”
“Building on this momentum, the North East Chamber of Commerce, in partnership with Interdigitate and on behalf of the North East Combined Authority (NECA), is leading a major research initiative to help employers widen access to work while tackling recruitment challenges.”
“The region faces a dual challenge: persistently high economic inactivity, often linked to health conditions, caring responsibilities and the availability of flexible work, alongside continued recruitment difficulties in key sectors. While good practice exists, fragmented employer engagement across programmes can make it harder for businesses to access support and for individuals facing barriers to secure sustainable employment.”
“This research will gather direct insight from employers on recruitment barriers, what would make inclusive hiring and flexible job design easier, and how regional support could be better coordinated. The findings will help shape more collaborative approaches, simplify access to skills and employment programmes, and inform future commissioning and policy.”
“The goal is a more joined-up, employer-friendly system that meets business needs while expanding access to quality jobs across the region. Tackling economic inactivity is central to unlocking the North East economy – because we are North East business.”