New figures show drop in North East unemployment

Unemployment is still a major concern for the North East despite rates falling faster than any other region in the UK, says NECC.

According to Office of National Statistics figures unemployment in the North East has fallen by 21,000 over the past year, compared to a rate of 7.8% nationally.

However, currently unemployment in the region stands at 127,000 of 9.8%, a rise of 1,000 over the past quarter.

Employment in the North East has decreased, falling by 11,000 over the last quarter to stand at 1,161,000 or 66.6%.

This current rate of employment compares to a rate of 71.4% nationally.

NECC Director of Policy, Ross Smith, said: “The latest regional estimates represent a mixed bag for the North East. Focusing on the positives, the North East unemployment rate is falling at the fastest rate of any region over the past 12 months and the claimant count is also down.

“However, it remains a concern that employment has also fallen for the fourth successive month.

“The national picture is clear – employment has slowly increased since 2010, while unemployment has been practically steady.

“The North East is a different story, both measures worsened between 2010-11, a reversal of this between 2011-12, and then a slight downturn again in early 2013.

“NECC’s recent Quarterly Economic Surveys paint a positive picture of employment growth among our members, but this is not enough to overcome the negative trends in some poorer performing parts of the economy, including the public sector.”

The figures also show that the claimant count stands at 90,200 or 7.3% in the North East, compared to 4.5% nationally

Ted Salmon, FSB North East Regional Chairman, said: “It is great to see that unemployment in the North East has decreased by 21,000 and employment increase by 3,000 over the past year.

“Coupled with the decrease in the claimant count these are really positive figures.

“We are also pleased to see an increase in the numbers of self-employed in the North East over the past year and want to see more take the plunge.

“Removing the age restrictions for the Start Up Loans scheme should help more people start their own business.

“There are still some big challenges that the labour market faces in the North East and helping small businesses to take on more staff is the key to tackling this.

“Small firms are more likely to take on those that have been unemployed for a long time, but they don’t have the confidence to create jobs.

“The range of incentives that are being used to tackle this aren’t being taken up and more needs to be done to promote them.”

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