Member Article

Employment in the North East down 11,000 for the quarter

Employment in the North East stands at 1.172 million, or 68.8%, a fall of 11,000 over the quarter, meaning that quarterly employment has fallen for the first time this year.

However, the latest labour market figures present a mixed picture due to an overall rise of 32,000 in employment for the year, comparing to a rate of 73% nationally.

North East unemployment stands at 132,000, or 10.1%, remaining steady over the quarter, 3,000 over the year, this compares to a rate of 6.2% nationally.

The region’s claimant count stands at 58,700 or 4.9%, 2% higher than the 2.9% national average.

The North East Chamber of Commerce, widely known in the region as the voice for North East businesses, representing around 4000 businesses and a third of the region’s workforce, have voiced their concern.

NECC Policy and Research manager, Mark Stephenson, said: “The rise in unemployment is a cause for concern given the sharp contrast to the substantial drop nationally.

The North East is struggling to reverse the rate of unemployment within its labour market and addressing this, whether through policies focused on employability or supporting investment by businesses has to be an urgent priority for regional and national policy makers.

“Continued improvement in the claimant count is very welcome with many people moving out of economic inactivity and into work.

“The North East’s relatively modest levels of business start-ups when compared to other UK regions means people are generally moving into work with existing businesses – which is supported by feedback in our Quarterly Economic Survey, with members reporting a strong appetite for full time permanent staff in particular.

“The national jobs figures remain very strong.

“Once again the increased divergence between the national and North East figures should be a cause for concern for politicians of all parties.”

Image credit credited to Clive Nicholson used under Creative Commons License.