Partner Article

End of year slowdown and post-Brexit uncertainty behind slight North East employment fall

The latest Office for National Statistics (ONS) figures have shown a fall in North East employment between September and November last year, a drop which shouldn’t cause too much worry according to regional commentators.

Employment stands at 1.2 million people in the region equating to 71.1%, a fall of 13,000 over the quarter but an increase of 4,000 over the year. Meanwhile, North East unemployment stands at 87,000, or 6.8%, a fall of 1,000 over the quarter and 17,000 over the year.

Richard Baker, North East LEP Head of Strategy and Policy, believes the fall in employment gains was to be expected amongst post-Brexit market uncertainty, which directly affected the business community.

“[Figures] should be seen against the backdrop of some uncertainty nationally and internationally which will impact on companies in the North East. The number of people unemployed has continued to fall throughout the year which is positive news for the regional economy and its future resilience.

“What is encouraging in today’s data is the number of people finding employment in ‘Better’ jobs – managerial, professional and technical personnel – has grown and then held firm in the latter half of 2016.

“The latest figures for the last quarter show that nearly two out of three of the new jobs being created in the North East are in those better job positions.

“This number is ahead of the target set out in the LEP’s Strategic Economic Plan for the North East, and is key to helping raise our economic performance and long term competitiveness.”

Paul Carbert, policy adviser, North East England Chamber of Commerce, added: “The employment statistics released this morning show welcome progress on reducing unemployment over the past year.

“There has not been a significant change in the employment or unemployment rate in the North East over the past quarter, in line with the other regions of the UK.

“Our most recent Quarterly Economic Survey shows the pace of workforce growth slowing. This is unsurprising after a long period of strong increases but underlines that continued good news on jobs can’t be taken for granted.

“We know that there is more work to do to build a Working North East and reduce our stubbornly high unemployment rate, which remains the highest in the UK.

“This year, the Chamber will work with members to ensure that our region benefits from increased funding for apprenticeships, and campaign for new funding models to open up opportunities for the unemployed.”

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