Region’s joblessness numbers still highest outside the capital
BENEFITS CLAIMANTS
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.”
ROSE BY 50,000 IN YEAR