Partner Article

North East unemployment rises by just under 1,500

The number of unemployed in the North East rose 1.1% in the final quarter of 2013, data from the Office for National Statistics shows.

Between September to November last year the number of unemployed in the region rose to 134,241, an increase of 1,484.

Employment in the region increased on the quarter by 22,000 and now stands at 67.4%.

The unemployment rate remained unchanged on the quarter at 10.3%, the highest of any region in Great Britain.

Ted Salmon, FSB North East regional chairman, said: “Our members in the North East continue to report that they are more confident than ever before and that they are looking to increase staffing levels.

“Today’s labour market statistics show that there are some real challenges for the sustainable recovery of the North East economy. Small businesses will be at the heart of the solution especially as 90% of those entering the labour market do so through a small business.

“The Bank of England needs to reflect on these North East labour market figures in its Forward Guidance before considering any changes to interest rates.”

NECC director of Policy, Ross Smith, said: “The most striking thing about today’s estimates is the quarter-on-quarter growth in employment in the North East, which is more positive than almost any other region. This echoesNECC’s Quarterly Economic Survey for the final quarter of 2013, which showed a record score for workforce growth.

“However, several more negative elements to these statistics are a cause for concern. The national unemployment downward trend is not evident in the North East and remains well above national average even though the claimant count continues to fall steadily.

“This demonstrates the need to increase business activity in the region, and improve skill levels so local people can access job opportunities, with recruitment particularly busy in the manufacturing and engineering sectors, and increasing in construction.

“An interesting national consideration is that unemployment is now close to the 7% threshold for the Bank of England to reconsider monetary policy, though most analysts do not expect to see a change in interest rates in the immediate future.”

This was posted in Bdaily's Members' News section by Tom Keighley .