Unemployment in the North East has fallen to what is believed to be a record low, with the region now below the national average for people out of work for the first time in history.
New figures from the Office for National Statistics (ONS) put unemployment in the region between February and April at 3.6%, a big fall on the 4.2% recorded for the last two months and below the UK average of 3.8%.
Having consistently been the national blackspot for unemployment for many decades, the North East has seen the biggest fall in unemployment over the last year and the highest rise in the number of people in work. There are now six regions and nations around the UK with worse figures for joblessness.
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Though economic analysts caution reading too munch into monthly figures, which can be volatile, the North East has seen sustained levels of low unemployment for more than a year. Nationally, Britain’s unemployment rate fell unexpectedly as the number of people in work hit a new record high and rose past its pre-pandemic level for the first time. Most economists had been expecting the unemployment rate to edge up to 4%.
But there were some worrying signs for the employment sector, with vacancies falling for the 11th time in a row and another record high for those off work due to long-term sickness. And average weekly regular wages hit a record outside the skewed pandemic years, but remained down with inflation taken into account.
North East LEP chief executive Helen Golightly said: "Today’s figures show that, in the latest quarter, the North East region’s unemployment rate was below the English average for the first time since comparable data started being collected over 30 years ago.
“There are over 50,000 more people in work in the region than a year ago and the unemployment rate for women in the North East was the lowest of all nine English regions. Over the past 12 months, we’ve seen the biggest increase of any region in our overall employment rate and the biggest falls in unemployment and economic inactivity rates.
“But, the progress that these statistics represent is not yet shared throughout all workers - the North East’s male employment rate was the lowest among the regions, for example. There’s also lots we don’t know yet, including whether high national levels of long term ill health are mirrored in the region or how much of the fall in unemployment is driven by underemployment and part time work when people would rather be working full time.
“At the North East LEP, we’re focused not just on jobs, but on more and better jobs so we’ll be keeping a watchful eye over the next few months to make sure this positive news translates into well-paid, productive jobs in the key sectors which will unlock long-term economic growth for the North East.”
Callum George, policy adviser at the North East England Chamber of Commerce, said: "The ONS employment figures released today show that whilst some gaps remain between the rest of the UK and the North East, the region has seen continued improvements in employment in the last quarter, so much so that our unemployment rate is actually lower than the national average. With that being said, economic inactivity remains a regional challenge. Although we’re seeing real signs of improvement, the North East still has the highest levels of economic inactivity in England."
A number of Conservative MPs in the North East have welcomed the fall in unemployment, with North West Durham MP Richard Holden describing the figures as "big positive news".
Darren Morgan, director of economic statistics at the ONS, said: “With another rise in employment, the number of people in work overall has gone past its pre-pandemic level for the first time, setting a new record high, as have total hours worked.
“The biggest driver in recent jobs growth, meanwhile, is health and social care, followed by hospitality. While there has been another drop in the number of people neither working nor looking for work, which is now falling right across the age range, those outside the jobs market due to long-term sickness continues to rise, to a new record.”
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