UK unemployment edges up, while North East economic inactivity falls for the fourth consecutive month
“The ONS employment figures released today (11 November 2025) show that between July and September 2025, the unemployment rate in the North East for people aged 16 and over was 5.8% – 0.8% higher than the UK average (up 0.1% on last month, but with the gap to the UK average narrowing).
“Economic inactivity among those aged 16 to 64 was 26.3%, a welcome decrease of 0.3% compared with the previous month. Although this remains 5.3% higher than the UK average and continues to pose a challenge to sustainable growth, the fourth consecutive monthly fall – with the gap to the UK average narrowing – is encouraging. Persistently high inactivity has held back the North East for too long, so continued progress in this area is vital.
“The employment rate for those aged 16 to 64 was 69%, which remains 6% lower than the UK average.
“While these figures show steady improvement, they also highlight the need for sustained action to boost participation, improve skills and remove barriers to work. Through our policy work, member engagement and regional partnerships, the Chamber continues to champion practical solutions that support employers and help more people into good jobs.
“Last month, the Chamber hosted an Employment Rights Bill roundtable. The session brought together organisations from across the North East to hear directly from businesses about how the proposed reforms could impact both employers and employees. The discussion highlighted the importance of consultation and clarity to ensure that changes strengthen rather than hinder workforce participation.
“In October, the government published the Post-16 Education and Skills White Paper, setting out an employer-led plan to tackle skills shortages. Key measures include a Youth Guarantee for every 18–24-year-old, automatic college places post-GCSE, an expanded network of Technical Excellence Colleges, and plans to double the number of Youth Hubs. The White Paper also commits to recruiting 6,500 new expert teachers, introducing a simplified funding model, and ensuring that two-thirds of under-25s are in higher-level study by 2040. These reforms are underpinned by Skills England’s new AI-driven labour market forecasting, designed to better align training provision with employer demand.
“The Chamber’s Linking Business with Education event last week, sponsored by New College Durham, brought together employers, educators and civic leaders to build stronger partnerships for a fairer North East economy. Keynote speakers Katrina Morley OBE and Dr Caroline Theobald CBE highlighted the importance of meaningful work experience as a strategic priority, and a youth panel challenged outdated stereotypes and called for greater equality of opportunity.
“The business panel agreed that collaboration is essential. Real progress happens when employers move beyond good intentions and actively shape career pathways for young people. Inclusion and partnership remain vital to unlocking regional talent and driving shared prosperity.”
“Together, we will continue to unlock the North East economy – because we are North East business.”
