Unemployment on the rise: September’s employment figures
Date published:
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%.