Unemployment in the North East has risen sharply after two months of record lows, new figures show.
Latest data from the Office for National Statistics (ONS) has shown the region’s unemployment has risen 0.5% to 4.7%, having fallen to record lows in the last two months. The rise in joblessness in the North East was higher than the small increase seen nationally.
The figures also showed the fifth quarterly fall in the number of job vacancies being advertised in a further sign of deepening economic gloom. Wages continued to be outstripped by rising prices, falling by 3.9% after Consumer Prices Index inflation is taken into account.
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It comes ahead of official figures tomorrow that are expected to show inflation remaining at high levels in November.
Callum George, a policy adviser at the North East England Chamber of Commerce, said the new figures showed that “employment in the UK is improving, but unfortunately this is not the case in the North East” and that “once again, gaps are widening”.
He added: “This data release in many ways carries more weight than previous months. It covers the span of Liz Truss’ premiership, and her fiscal statement that caused uncertainty for many sectors. We’ve also then seen Prime Minister Sunak take his post, at a time when the UK was entering a recession.
“Today’s figures show that despite budgets being slim, the Government must remain committed to Levelling Up in the North East, to help tackle regional differences. Businesses in the North East should be proud of the innovation and resilience they have shown so far in combatting Covid, and the cost-of-living crisis.”
Chancellor Jeremy Hunt said: “While unemployment in the UK remains close to historic lows, high inflation continues to plague economies around the world as we manage the impacts of Covid-19 and (Vladimir) Putin’s invasion of Ukraine.
“To get the British economy back on track, we have a plan which will help to more than halve inflation next year – but that requires some difficult decisions now. Any action that risks embedding high prices into our economy will only prolong the pain for everyone, and stunt any prospect of long-term economic growth.
“With job vacancies at near-record highs, we are committed to helping people back into work, and helping those in employment to raise their incomes, progress in work, and become financially independent.”
But Shadow work and pensions secretary Jonathan Ashworth said: “Twelve years of Conservative failure on the economy has left working people with falling wages, employment lower than pre-pandemic and record numbers of people out of work for reasons of ill-health - costing billions more in benefit payments.
“Instead of turning their backs on people who want help to find a job, Labour would get Britain working again and target the highest employment in the G7 by shifting resources to local communities. A Labour government will get our economy firing on all cylinders with our green prosperity plan and an active partnership with business.”
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