Worries have emerged over the “concerning” number of people in Newcastle who have left the workforce.
While there have been fears nationally about a rising number of working age people being ‘economically inactive’ since the Covid pandemic hit, particularly among the over-50s, new figures reveal that Newcastle appears to be faring far worse than other Northern cities. According to Newcastle City Council, in 2021/22 there were an estimated 40,900 city residents out of work or not actively seeking work – compared to 33,700 in 2012.
That means Newcastle is the only core city in England where levels of economic inactivity are worse now than they were a decade ago, having experienced a sharp rise in 2021. While economic inactivity rates in Newcastle have increased 21% in the last 10 years, elsewhere they have decreased by one per cent in Manchester, eight per cent in Leeds, 27% in Sheffield, 30% in Liverpool, five per cent across the North East as a whole, and eight per cent across Great Britain.
Read More: 'TransPennine Express has completely failed the North East': Mayor's plea over train cancellations
The trend has been blamed on factors such as more people having long-term health issues, having care responsibilities for family members, or simply choosing not to come back to work after the pandemic. However, local authority chiefs in Newcastle are scratching their heads over why the problem appears to be more pronounced on Tyneside – with economic inactivity here jumping in all age groups from 25 to 64.
A report to councillors warns that Newcastle’s issue “appears to be more widespread than in other Northern core cities, which, if it is sustained, is concerning”. Council economic adviser Robin Beveridge told a scrutiny panel on Monday: “I was surprised that we differed so much from other core cities. There the rise seemed to be steeper and there has not been a fall in the way that there has in other places.
“I don’t know why that is, I don’t have a ready explanation. If you look at economic performance generally, I don’t think that we are performing worse than the likes of Liverpool or Sheffield. I am going to keep an eye on this; maybe it is a blip in the data and maybe an explanation will emerge.”
Analysis shows that Newcastle has experienced a major rise in the number of people out of work because they are looking after their home or family, up by 2,711 and 25% higher than the average level from 2012 to 2020, and who are on temporary or long-term sick, up by 3,289 and 23% higher than the 2012 to 2020 average. Yet the North East as a whole has seen a rise in inactivity due to sickness of only 15% compared to the 2012 to 2020 average and a fall in the number of people looking after their family or home.
Labour councillor Stephen Lambert told the council’s Economy, Jobs and Skills Scrutiny Committee that barriers for older people hoping to get back into work were “an area of discrimination that seems to be low on the agenda”.
Lib Dem councillor Greg Stone, who chairs the scrutiny committee, said: “There is a divergence between Newcastle and other cities who are going in a different direction to us and it is important that we get a grip on this. I can see that for young people there are other agencies working with those groups on things like mental health and information services targeting them.
“But there is a much wider canvas to deal with for the over-50s. There are very different concerns and it is not easy to pin down a delivery partner to put together a response on that.”
Mr Beveridge added: “Every time you see a training advert you see a bright-eyed, bushy-tailed young person. What about those of us who are a bit older and could equally benefit from learning new skills?”
Concerns were also aired about the number of 16 to 19-year-olds who are not in education, employment or training (NEET). Most recent figures put the number of NEETs in Newcastle at 375 – 14.4% of which report that mental health issues are a barrier to entering work.
The areas with the highest NEET cohort are Elswick (59), Walker (31), Benwell (30) and Kingston Park and Newbiggin Hall (24) – some of the city’s most deprived wards.
Read Next:
- Local elections 2023: Your guide to what's happening in Tyne and Wear on May 4
- Popular Geisha restaurant in Jesmond shuts its doors amid claims it has been 'persecuted' by council
- Plans lodged to breathe new life into derelict former nurses' home in Newcastle's West End
- Call for barriers at 'not fit for purpose' Metro level crossing after latest crash between train and car
- Tyne Bridge restoration moves closer as approval granted for works that could last four years
