Unemployment falls, but challenges remain for the North East
Date published:
Josh Maratty, policy adviser at the North East Chamber of Commerce, said:
“The ONS employment figures released today (21 April 2026) show that between December 2025 and February 2026, the unemployment rate in the North East for people aged 16 and over was 6.1% (compared to 7.1% last month) – now 1.2% higher than the UK average.
“Economic inactivity among those aged 16 to 64 was 24.1%, a decrease of 0.3% compared with the previous month. The rate remains 3.1% higher than the UK average and indicates one in four working-age adults in the North East is economically inactive, underlining the ongoing challenge the region is facing.
“The employment rate for those aged 16 to 64 rose to 71.3% from 70.1% the previous month, which is now 3.7% lower than the UK average.
“UK job vacancies fell to 711,000 in January to March 2026, their lowest level since February to April 2021, representing a 3.9% drop on the previous quarter and an 8.3% decline compared to the level last year. The decrease was broad-based, with 13 of 18 industry sectors and 4 of 5 employer size bands recording fewer vacancies compared with October to December 2025, with small businesses (1-9 employees) seeing the sharpest fall. Meanwhile, the ratio of unemployed people to vacancies held steady at 2.5, unchanged since mid-2025 after several quarters of increase.
“The Chamber has been active across a range of initiatives focused on economic inclusion, skills and opportunity in the North East. As part of the Keep Britain Working Vanguard programme, the Chamber participated in a session bringing together employers, providers and regional partners to design practical approaches that support people to stay well, stay in work and return to work following illness. This work is particularly significant for the North East, where high levels of economic inactivity remain a pressing challenge, and the Chamber is committed to helping shape healthier, more inclusive workplaces across the region.
“Alongside this, we partnered with Joe Morris MP to host a jobs fair connecting local employers with young people. This collaboration reflects a shared commitment to strengthening the links between education and the economy, helping young people recognise the opportunities on their doorstep, retaining local skills and supporting North East businesses in building their future workforce.
“Looking ahead, the Chamber is participating in a roundtable convened by the Department for Education’s Higher Education Access and Participation Task and Finish Group, as part of its Regional Disparities subgroup, hosted by Northumbria University.
“The roundtable will bring together senior representatives from across the region to share perspectives, respond to emerging policy ideas and help shape recommendations at a national level. At a time when regional disparities in educational opportunity and outcomes are firmly on the policy agenda, the voices of North East institutions and organisations must be heard clearly and collectively.”
Note to Editors
- Official statistics under review published by the ONS suggest that between December 2025 and February 2026, the unemployment rate in the UK for ages 16-64 was 4.9%. In the North East, this was higher at 6.1%.
- The UK’s employment rate for ages 16-64 was 75%. In the North East, this was lower, at 71.3%.
- The UK’s economic inactivity rate for ages 16-64 was 21%. In the North East, this was higher at 24.1%.
- The ONS continues to use experimental data following issues with data collection, which made employment figures unavailable for a period. For more details on the ONS’ switch from experimental data to official statistics under review, please click here.