Unemployment on the rise: September’s employment figures

Written by

Callum George, Policy Adviser at the North East England Chamber of Commerce, said:

The ONS employment figures released today reveal a sharp increase in unemployment. This has meant gaps between the North East and the UK have widened again.


Between May and July 2023, the unemployment rate in the North East for those aged 16+ was 0.9% higher than the national average. Additionally, the economic inactivity rate for people aged 16-64 in the North East remained higher than the national average, by 0.8%. The region’s employment rate for those aged 16-64 was 1.4% lower than the national average.


Compared to the previous quarter, in the North East, the employment rate has decreased by 0.3%, whilst the unemployment rate has increased by 1.6%. However, the economic inactivity rate has decreased by 0.8%, showing that more people are available to work in the labour market. 


In the first half of the year, the North East’s labour market has improved significantly compared to where we were last year; sometimes in spite of unemployment rising nationally. Whilst today’s figures show a widening of gaps in employment and unemployment that need to be addressed, compared to this time last year, the North East has seen the largest increase in employment out of any region in the UK.


Despite the statistics showing the North East’s improvements on the year, it is only right to acknowledge that businesses are still facing relentless issues when it comes to recruitment and retention. This has a financial impact on businesses, but also affects the workload and wellbeing of existing workers.


The ONS reports that nationally, inactivity due to ill health continues to hit record highs month-on-month. The most recent regional data shows that the number of people inactive due to ill health is at its highest levels in over 15 years. Historically, ill health has been a regional issue for the North East; placing an urgent need for policymakers to target occupational health.


As we prepare for the Autumn Statement, it’s clear that there is still work to be done to support people back into work, and help those that find new employment thrive in the workplace. To best represent North East business, we are currently consulting our members on the issues their businesses – and the communities they serve locally – face.

If you are interested in speaking to a member of our policy team as part of this consultation, please get in touch with your engagement manager.

Notes

Data published by the ONS shows between May and July 2023, the unemployment rate in the UK for ages 16+ was 4.3%. In the North East this was higher at 5.2%.

The UK’s employment rate for ages 16-64 was 75.5%. In the North East this was lower, at 74.1%.

The UK’s economic inactivity rate for ages 16-64 was 21.1%. In the North East this was higher, at 21.9%.

Chamber comment on employment stats

Written by

Callum George, Policy Adviser at the North East England Chamber of Commerce, said:


The ONS employment figures released today show a loosening of the regional labour market, although gaps compared to the national average remain.


Between September and November 2022, the unemployment rate in the North East for those aged 16+ was 1% higher than the national average. Similarly, the economic inactivity rate for people aged 16-64 in the North East remained higher than the national average, by 3.3%. The North East’s employment rate for those aged 16-64 was 4.1% lower than the national average.


In the North East, the employment rate has improved by 0.3% compared to June-August 2022. Economic inactivity has also improved by 0.6%. However, the unemployment rate has increased by 0.3%.


In last month’s reaction to employment figures, we said that the unemployment rate would be worth keeping an eye on as the recession deepens. We know from our most recent Quarterly Economic Survey, that staff costs are one of employers’ main concerns going into 2023.


We know that Prime Minister Sunak is determined to get people who are economically inactive back into the workforce, which is extremely important. However, if unemployment rates and financial pressures continue to worsen, businesses may also need more support in maintaining their current workforce.

Notes

Data published by the ONS shows between September and November 2022, the unemployment rate in the UK for ages 16+ was 3.7%. In the North East this was higher, at 4.7%.


The UK’s employment rate for ages 16-64 was 75.6%. In the North East this was lower, at 71.5%.


The UK’s economic inactivity rate for ages 16-64 was 21.5%. In the North East this was higher, at 24.8%.

Chamber comment on this month’s employment stats

Written by

Callum George, Policy Adviser at the North East England Chamber of Commerce said:

“The ONS employment figures for November show that- whilst rates of economic inactivity are still concerning- gaps between the North East and the UK are closer than previous months.

“Between July and September, the unemployment rate in the North East for those aged 16+ was 0.6% higher than the national average. Similarly, the economic inactivity rate for people aged 16-64 in the North East remained higher than the national average, by 3.6%. The North East’s employment rate for those aged 16-64 was 3.8% lower than the national average.

“In the North East, the unemployment rate has improved by 0.9% compared to April-June 2022. Additionally, the employment rate has improved by 0.3%. However, economic inactivity has worsened by 0.3%.

“With Prime Minister Sunak’s government announcing their new fiscal plan in two days, it is crucial that those who are struggling to access the job market are accounted for. This means a commitment to training and education, as well as a focus on helping adults back into work who left the labour market during COVID.”

Notes

Data published by the ONS shows between July and September 2022, the average unemployment rate in the UK for ages 16+ was 3.6%. In the North East this was higher, at 4.2%.

The UK’s average employment rate for ages 16-64 was 75.5%. In the North East this was lower, at 71.7%.

The UK’s average economic inactivity rate for ages 16-64 was 21.6%. In the North East this was higher, at 25.2%.

October employment statistics

Written by

The ONS employment figures for October show that gaps between the North East and the rest of the country are still concerning.

Between June and August, the unemployment rate in the North East for those aged 16+ was 0.9% higher than the national average. Similarly, the economic inactivity rate for people aged 16-64 in the North East remained higher than the national average, by 3.8%. The North East’s employment rate for those aged 16-64 was 4.3% lower than the national average.

In the North East, the unemployment rate has improved by 0.8% compared to June-August last year. However, the employment rate is 0.1% lower, and economic inactivity has worsened by 0.8%.

Even compared to last month’s employment statistics, the North East’s economic inactivity rate has worsened by 0.2%. This shows more needs to be done to help people access the job market.

The new government has set out its plan, which includes addressing the NHS backlog and helping people into work. For the government’s growth strategy to succeed, it must be inclusive of those who are struggling to access the labour market.

Notes

Data published by the ONS shows between June and August 2022, the average unemployment rate in the UK for ages 16+ was 3.5%. In the North East this was higher, at 4.4%

The UK’s average employment rate for ages 16-64 was 75.5%. In the North East this was lower, at 71.2%.

The UK’s average economic inactivity rate for ages 16-64 was 21.7%. In the North East this was higher, at 25.5%.

Chamber statement on today’s employment figures

Written by

Marianne O’Sullivan Policy Manager at the North East England Chamber of Commerce said:

‘Today’s employment figures show that there are still gaps between the North East and the rest of the UK.’

The North East’s unemployment rate is 1.3% higher than the UK average, our economic inactivity rate is 3.7% higher and our employment rate is 4.4% lower.

In the last 12 months there has been a 0.8% decrease in the unemployment rate for the North East for all workers above the age of 16. But there has been a 0.2% reduction in the employment rate and a 0.9% increase in economic inactivity for workers aged 16-64 in the region.

In our last quarterly economic survey over 90% of businesses said that inflation and energy prices are of significant concern, with staff costs and staff shortages not far behind. The Government need to be addressing these urgent issues for the North East’s economy.

Reducing economic inactivity is a key opportunity for the region and we will be working with employers to access new talent and close some of these gaps ourselves but we urge the Government to do more.  Closing the gap to the national averages will be one of the key measures of the Government’s levelling up agenda.

Notes:

Figures from the ONS (Office for National Statistics) show that between March and May 2022 the UK’s employment rate for ages 16-64 was 75.9%, compared to the North East at a lower rate of 71.5%.

The UK’s unemployment rate for all workers aged 16+ was 3.8% compared to 5.1% in the North East.

The UK’s economic inactivity rate for ages 16-64 was 21.1% compared to 24.8% in the North East.

Chamber comment on today’s employment figures

Written by

Rhiannon Bearne, director of policy and representation at the North East England Chamber of Commerce said:

“Today’s employment figures once again paint a difficult picture for the North East. The North East continues to have the highest unemployment rate and the lowest employment rate across the UK. We are the only region to have experienced slight decreases in jobs and employment overall from November 2021 to January 2022.

“We remain the region with the highest economic inactivity rate in England – too many people have left our workforce altogether.

“Closing these gaps is now urgent as the UK faces another challenging economic period. It is vital that the North East, our people and businesses, are not left further behind. We welcome today’s announcement of David Buttress as the Government’s new Cost of Living Business Tsar. The North East business community is ready to offer practical solutions to some of these important regional challenges.”

Notes:

Employment in the North East stands at 1,202,000, an increase of 5,000 (0.4%) over the year to April 2022. The North East employment rate stands at 71.2%. This compares to a rate of 75.6% nationally.

North East unemployment stands at 66,000, a fall of 15,000 (18.5%) over the year to April 2022. However the North East unemployment rate stands at 5.2%. This compares to a national rate of 3.8%.

Economic inactivity in the North East for those aged 16-64 stands at 403,000, an 20,000 (5.2%) increase on the year to April 2022. The North East economic inactivity rate stands at 24.8%. This compares to a national rate of 21.3%.

The seasonally adjusted claimant count stands at 71,200 in the North East. This is a fall of 1,400 (1.9%) over the month and a fall of 38,000 over the year (34.9%). The claimant count rate for the North East is 5.1%.

The employment data covers the period February to April 2022. The provisional claimant count data is for May 2022.

Chamber comment on today’s employment stats

Written by

Arlen Pettitt, knowledge development manager, North East England Chamber of Commerce said: “These jobs numbers tell their own story, especially when put alongside yesterday’s GDP figure showing just 0.1% growth in February. The headline rate of unemployment may have fallen, however this isn’t the result of more people in work but rather more people drifting out of the labour market entirely, as seen in the rising economic inactivity figure.

“What we have is an economic recovery which is stuttering. Just as the cost of living is starting to bite for individuals, so too is the cost of doing business for our region’s employers. Our latest economic survey told us costs are the biggest worry for businesses, with nine in ten North East firms citing inflation as a concern and the same number saying energy prices.

“The Chancellor’s Spring Statement failed to address those concerns. It’s been two almost impossibly difficult years, and with more uncertainty ahead of us we need the Government to face up to reality and take some tangible steps to support business recovery.”

Editor notes:

Employment in the North East stands at 1,186,000, a rise of 2,300 (0.2%) over the quarter but a fall of 20,000 (1.7%) over the year. The North East employment rate stands at 70.2%. This compares to a rate of 75.5% nationally.

North East unemployment stands at 67,000, a fall of 4,800 (6.7%) over the quarter and a fall of 6,800 (9.2%) over the year. The North East unemployment rate stands at 5.4%. This compares to a national rate of 3.8%.

Economic inactivity in the North East stands at 417,000, an increase of 10,700 (2.6%) on the quarter and 36,000 (9.3%) on the year. The North East economic inactivity rate stands at 25.7%. This compares to a national rate of 21.4%.

The seasonally adjusted claimant count stands at 78,500 in the North East. This is a fall of 2,200 (2.7%) over the month and a fall of 38,800 over the year (33.1%). The claimant count rate for the North East is 5.6%.

The employment data covers the period December 2021 to February 2022. The provisional claimant count data is for March 2022.

Chamber comment on today’s employment stats

Written by

Niamh Corcoran, policy adviser, North East England Chamber of Commerce said: “Today’s labour market figures continue to paint a mixed picture. Whilst unemployment has fallen by 12.9% over the quarter, employment levels have also fallen by 1.35% and regional levels of economic inactivity have risen at the fastest rate in the country. Long-term ill health and new-found caring responsibilities seem to be the primary driver of this trend. The government should do more to support those in economic inactivity, where possible, to re-enter employment. 
 
“Staff shortages continue to be a problem for businesses, with vacancy levels again reaching record highs this month. Businesses are continuing to struggle to find the staff and skills they need in their business. If this trend continues, it is likely that businesses will be unable to operate at full capacity and productivity will suffer. 
 
It is clear that more needs to be done to bridge the economic inactivity gap and make it easier for businesses to recruit the talent they need. This includes more investigation into rising levels of long-term ill health and bespoke support for those in economic inactivity to re-enter work, as well as an expanded upskilling and retraining offer for adults to better equip workers with the skills businesses need.”
 
This month’s stats:

  • Employment in the North East stands at 1,145,000, a fall of 16,000 (1.35%) over the quarter and a fall of 19,000 (1.6%) over the year. The North East employment rate stands at 70.7%. This compares to a rate of 75.4% nationally.
  • North East unemployment stands at 64,000, a fall of 10,000 (12.9%) over the quarter and a fall of 20,000 (23.6%) over the year. The North East unemployment rate stands at 5.1%. This compares to the national rate of 4.3%.
  • The claimant count stands at 93,000 in the North East. This is a fall of 1,800 (1.9%) over the month and a fall of 27,400 (22.8%) over the year. The claimant count rate for the North East is 6.5%. 
  • The employment data covers the period July to September 2021. The provisional claimant count data is for October 2021. The next release is the 14th December 2021.