More people are in work in the North East, official new figures show

A jobcentre
-Credit:PA


The North East’s rate of worklessness has eased slightly but remains the worst in England, new figures show.

Official data from the Office for National Statistics shows that the region’s unemployment rate has stayed at 5.4% in the three months to November, but that the number of people classed as economically inactive has fallen to 25.5%. That means 70.4% of people in the region are in work, the lowest rate in England.

People classed as economically inactive include those who have retired early or are choosing not to work due to caring responsibilities, as well as people with long-term sickness.

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Nationally, UK unemployment rose slightly to 4.4% and the number of payrolled employees was estimated to have tumbled by 47,000 during December to 30.3m – the biggest drop since November 2020. But the statistics showed wage growth rose again, with average regular pay surging to 5.6% in the three months to November and outstripping Consumer Prices Index inflation by 3.4%.

Josh Maratty, policy advisor intern at the North East Chamber of Commerce, said: “The Chamber’s latest Quarterly Economic Survey shows a mixed outlook for local businesses, with concerns around rising costs and workforce challenges. Though there are some positive signs, with progress in energy efficiency and part-time recruitment.

“There have been some positive announcements in the region, with Nissan and Japan Automatic Transmission Company (JATCO) securing a £50m investment to establish a new manufacturing plant in Sunderland. This partnership, backed by government support, will create 183 high-value jobs in the North East and support over 400 roles within the wider supply chain.

“There is also positive news in the creative sector, with the Government announcing £5m in funding for a new glass-making facility in Sunderland and £5m for a new Centre for Writing in Newcastle. The new writing centre is expected to support over 100 trainees and attract 35 creative businesses to the region. These investments demonstrate a strong commitment to North East industry, but it’s clear that further Government support is needed to drive continued growth in the region.”

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Work and Pensions Secretary Liz Kendall said: “Today’s figures are more evidence that we must get Britain working, which is why this Government is relentlessly focused on driving up opportunity and driving down barriers to success in every part of the country. With real wages continuing to rise we are working to boost living standards and get the economy growing as part of our Plan for Change by reforming jobcentres, joining up fragmented local support and guaranteeing every young person has the chance to be earning or learning.”

Separate figures also released yesterday show that company collapses in England and Wales fell last year, according to new official figures, but experts warned of more uncertainty for firms in the coming months.

Some 23,872 companies went out of business in 2024, the Insolvency Service said, down 5% on the previous year. Despite the drop year-on-year, the number of insolvencies was far higher than most of the last decade, and remains at levels last seen during the 2008 financial crisis.