Unemployment gap in region widening

JOBLESS RATE RISES BUT EMPLOYMENT ALSO INCREASING

THE North East’s unemployment gap with the rest of the country is increasing, new figures show.

Unemployment in the region between July and September rose to a rate of 5.9%, the highest rate in the UK and well above the national average of 3.9%.

A further 12,000 people were unemployed compared to this time last year.

The picture was complicated by the number of people in employment also rising in the North East, with a fall coming in the number of people classed as “economically inactive” in the region.

Nationally, UK employment suffered its sharpest decline in more than four years in the three months to September and analysts warned that the UK jobs market has “softened” as Brexit uncertainty bites.

North East England Chamber of Commerce policy adviser Paul Carbert said: “The Chamber is calling on all political party leaders to produce a compelling vision for regional growth ahead of the General Election next month.

“We will hold the new Government to account on their plans for improving the economy in all parts of the country.

“We are calling for politicians to give us the powers and the funding to address barriers to growth, and make decisions on infrastructure and skills investment that will benefit North East residents and businesses.”

North East LEP senior economist Victoria Sutherland said: “We are pleased to see that the number of people in employment has increased by 6,000 over the last three months. The North East was one of five English regions to see employment increase, with only the North West and West Midlands having larger increases. “While the number of people in employment has increased, the number participating in the labour market has grown even faster. As a result, unemployment has also increased, with 7,000 more people unemployed than last quarter. The North East continues to have the highest unemployment and economic inactivity rates in England.

“It is important that partners across the North East continue to work together to create the conditions for a stronger economy which delivers employment growth. The North East LEP will continue to work with its partners to deliver the North East Strategic Economic Plan’s ambition of more and better jobs.”

Nationally, the quarterly decline in employment was the heaviest since May 2015, when the level fell by 65,000.

The ONS said the falling number of people working in retail, on the back of a number of a recent major collapses and store closure programmes on the high street, significantly contributed to the slump in employment.

We will hold the new Government to account on their plans for improving the economy for all parts of the country

Paul Carbert