Member Article

Latest figures show slight fall in North East employment

The latest Office for National Statistics (ONS) figures have shown a fall in North East employment, although the North East eployment market has still enjoyed a much stronger year than last.

The report revealed that employment in the region stands at 1,162,000 or 68.1% - a fall of 23,000 over the quarter but an increase of 5,000 over the year. This compares to a rate of 73.5% nationally.

North East unemployment stands at 108,000 or 8.5% - a rise of 13,000 over the quarter but a fall of 18,000 over the year. This compares to a rate of 5.5% nationally.

The claimant count stands at 46,900 or 3.9% in the North East.

Jonathan Walker, Head of Policy and Campaigns, North East Chamber of Commerce, said: “Another fall in employment and rise in unemployment over the quarter is obviously a cause for concern, with the North East following national trends in both regards. However, these falls should be seen in the context of the annual figures, which show the North East labour market is still in a much healthier position than this time last year.

“We have seen much positive news for the North East economy in the past month, including the Hitachi plant opening, further investment in Nissan and Reece Group’s re-opening of the Armstrong works. On top of this, our Quarterly Economic Survey shows a large number of NECC members growing their workforce.

“But today’s numbers should serve as a reminder not to be complacent about the recent progress made in tackling unemployment in the region. The gap between our rates and the national averages is still far too large. Despite the positive recruitment intentions we see among businesses, the region is still facing significant job losses from the public sector and the oil price fall is undoubtedly having an impact.”

Chief Economist of the North East LEP, Chris Miln, added: “Whilst today’s figures present a disappointing picture in the short term, they also demonstrate clear progress in the North East labour market over the past couple of years, helping to move us towards the targets we have previously set out in our strategic economic plan.

“The latest inactivity and unemployment rates highlight the need for more and better jobs in the region through addressing both supply and demand side issues in the regional economy and we have seen recent growth on the demand side. Between 2013 and 2014 3,000 new enterprises were created in the North East, a 5% increase.

“We are continuing to scrutinise labour market statistics which form an important part of our evidence base. To this end we have recently increased our team’s analytical capacity and I would like to welcome Fiona Thom to the team who has joined us from the Department for Health.”

However, Northern TUC Policy and Campaigns Officer, Neil Foster said: “Government ministers would have you believe we are all enjoying an economic recovery and the economy is successfully rebalancing towards the north, but today’s jobs figures tell a different story. Unemployment in the North East has increased by 13,000 in the last 3 months and alarm bells should be ringing.

“Women are being hit hard the most in our region with the female unemployment rising by a fifth in the last quarter. The Government’s extreme spending cuts will mean more women and men lose their jobs as councils and other public sector employers lay off workers in the coming months if austerity policies are maintained.

“With added insecurity in steel and manufacturing industries these are worrying times for the region’s workers in the public and private sectors. North East businesses are doing their best in challenging economic conditions but government suggestions that everywhere is doing fine appears to be dangerously complacent.”