Unemployment rate falls in the North East despite economic inactivity rising
Date published:
Josh Maratty, policy advisor intern at the North East Chamber of Commerce, said:
The ONS employment figures released today (18 February 2025) show that while the North East’s unemployment rate has fallen by 0.4% compared to figures released last month, the region’s economic inactivity rate has increased by 0.5%, meaning the North East continues to face higher levels of economic inactivity than the UK average.
Between October and December 2024, the unemployment rate in the North East for those aged 16+ was 5%, which is 0.6% higher than the UK average. However, this represents a decrease of 0.4% compared to the figures released last month for the North East.
At the same time, economic inactivity for those aged 16-64 in the North East has increased by 0.5% compared to the figures released last month, rising to 26%. This is 4.5% above the UK average of 21.5%.
The North East’s employment rate for those aged 16-64 was 70.3%, which is 4.6% lower than the UK average of 74.9%.
The ONS has stated some volatility remains in its data collection method, specifically the Labour Force Survey, due to small sample sizes. Nevertheless, these figures underscore the North East’s persistent challenges of overall higher economic inactivity and unemployment.
The Chamber has actively engaged with the government’s comprehensive spending review to advocate for a stronger, fairer North East. We welcome the announcement of two regional trailblazers for the North East as part of the Get Britain Working White Paper. These trailblazers, driven by devolution and regional expertise, are instrumental in addressing economic inactivity and regional challenges.
Secure work is vital for the region’s economic health. The public, private and voluntary sectors must have certainty that the investment outlined in the white paper will continue beyond 2026 to support people in both entering and remaining in the workforce in the North East.
Health-related tax incentives for SMEs will play a significant role in improving access to healthcare and occupational support, thereby enhancing employment opportunities. This approach highlights the benefits of devolution, enabling local regions to create tailored solutions that promote economic growth and address regional issues more effectively.
We are North East business, and we will continue to work with our members, the Combined Authorities and the Government to drive growth.