The Chronicle

Region’s joblessnes­s numbers still highest outside the capital

BENEFITS CLAIMANTS

- By GRAEME WHITFIELD Business Editor graeme.whitfield@reachplc.com

NORTH East unemployme­nt remains the highest in the UK outside London despite a mixed picture in official figures released today.

Data from the Office for National Statistics showed that the headline rate for unemployme­nt in the region had fallen to 5.7% in the three months to the end of February. But the number of people claiming unemployme­nt benefit – a more upto-date figure – had risen to 119,905, an increase of nearly 50,000 in the last 12 months.

Nationally, the coronaviru­s outbreak has seen London emerge as the region’s unemployme­nt blackspot, with levels of joblessnes­s in the capital now standing at 7.2%.

The pandemic has also disproport­ionately hit the employment prospects of young people, with more than three-quarters of those losing their jobs under 35. There are also fears that the Goverment’s Job Support Scheme could be masking deeper-rooted problems in the economy, with around five million people in the country still on furlough.

Niamh Corcoran, policy adviser at the North East England Chamber of Commerce, said: “Employment statistics released today continue to show the labour market in a relatively stable state, likely due to the support of the Job Retention Scheme. Overall, the region’s employment rate grew, and unemployme­nt rate fell marginally over the quarter.

“With the furlough scheme successful­ly protecting jobs, it is distorting the true picture.

“It is likely that the full extent of the pandemic’s impact on the regional labour market will only be clear once the scheme is wound down. It is at that point that Government will need to act quickly to mitigate spikes in regional unemployme­nt.

“Worryingly, today’s national data exposes the significan­t impact of the pandemic on the employment prospects of young people.

“In the UK, more than half of those losing their jobs over the last year were below the age of 25, and 78% were under 35. With young people bearing the brunt of the crisis, the Government should urgently extend the Kickstart Scheme and strengthen the apprentice­ships system to increase the opportunit­ies for young people.”

Richard Baker, strategy and policy director at the North East LEP, said: “The North East was one of only three English regions to experience a quarterly increase in employment, but there remains a long way to go to recover the economy. As the controls on the economy are unlocked, we will continue to work with Government and our partners to drive forward our vision of a more sustainabl­e, competitiv­e and inclusive regional economy.

“The figures show that the region has the lowest working age employment rate at 71.0%, compared to 75.5% across England, the second highest unemployme­nt rate in England (5.7%) and the highest proportion of working age people who are economical­ly inactive (23.7%). About 28,000 workers in the region have been made redundant during the last year.”

Employment Minister Mims Davies said: “Today we see another drop in unemployme­nt, vacancies on the rise and over half a million people people joining payrolls in the last month. But it remains a challengin­g time for many.”

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 ?? PHOTO: OWEN HUMPHREYS/PA WIRE ?? A ship sits on the horizon off the coast at Tynemouth as the sun rises yesterday
PHOTO: OWEN HUMPHREYS/PA WIRE A ship sits on the horizon off the coast at Tynemouth as the sun rises yesterday

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