The North East’s unemployment rate has edged closer to the national average after staying unchanged in the latest figures.
New data from the Office for National Statistics (ONS) shows that the North East’s unemployment rate stayed at 4.2% in the three months to the end of March, with the region seeing the largest drop in joblessness in the UK over the last year.
That puts the North East close to the UK average of 3.9% - a slight rise on last month - and the England figure of 4.0%. The region has traditionally had the worst figures for unemployment in the country but there are now three areas - the West Midlands, London and Wales - which have higher unemployment.
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Nationally, vacancies have fallen to the lowest level for 18 months, with ONS saying this reflected “uncertainty across industries, as survey respondents continue to cite economic pressures as a factor in holding back on recruitment”.
North East LEP chief executive Helen Golightly said: “These figures contain some really positive news for the region’s jobs market. Almost 38,000 more people are in work in the region than a year ago, and we’ve seen a big shift from economic inactivity into employment over the past three months.
“But, underneath the headlines, there are some indicators which suggest the improvements are not being spread evenly across the workforce - the rise in employment rate was much higher for women than it was for men and, in fact, the employment rate actually fell for men aged 25 to 49. We also know that nationally the falls in economic inactivity were largely driven by younger people aged 16 to 24, and that long term sickness has reached record highs. We can expect those trends to be echoed in the North East figures when they become available.
“These are tough times for business, and a rise in planned redundancies reflects broader economic uncertainty and the impact of rising costs. As a region we need to celebrate the positive progress that has been made, but keep working hard to make sure we have a fit, productive workforce with the right skills to enable our businesses to thrive.”
Callum George, policy adviser at the North East England Chamber of Commerce, said: "This is the third month of consecutive employment growth in the North East, with each month-on-month increase outperforming the last. The ONS reports that whilst the downturn of economic inactivity in the UK is due to 16-24-year-olds entering employment, there is still a cause for concern as the number of people nationally out of work due to ill health is the highest on record.
"We know that the North East’s labour market already faces regional inequalities when it comes to ill health. Therefore, to sustain job growth in the North East and ensure new workers are supported to stay in work, occupational health support is crucial."
Labour said the Office for National Statistics figures showing the rate of UK unemployment at 3.9% is evidence the Conservative Government is “a drag” on the economy.
Shadow work and pensions secretary Jonathan Ashworth said: “Family finances are being squeezed to breaking point by a further fall in real wages, fewer people are in employment than before the pandemic and the number of people out of work due to long-term sickness has reached a record high.
“Labour’s ambitious reform plan will open up Jobcentres, support over 50s back into work and provide specialist job support for those with ill health. With our mission to secure the highest sustained growth in the G7, we will get our economy moving and create good jobs across every part of the country.”
Chancellor Jeremy Hunt said: “It’s encouraging that the unemployment rate remains historically low but difficulty in finding staff and rising prices are a worry for many families and businesses. That’s why we must stick to our plan to halve inflation and help families with the cost of living, while delivering our childcare reforms and supporting older people and disabled people who want to work.”
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