Member Article

Policy leaders hail North East employment growth

The latest Office for National Statistics (ONS) figures have indicated that North East employment is continuing to move in a upward trajectory, building on positive figures released last month.

Employment in the region stands at 1,225,000 or 72.4% - an increase of 22,000 over the quarter and 24,000 over the year. This compares to a rate of 74.9% nationally.

Meanwhile, North East unemployment stands at 78,000 or 6.0% - a fall of 5,000 over the quarter and 19,000 over the year. This compares to a rate of 4.5% nationally.

Jonathan Walker, head of policy and campaigns, North East England Chamber of Commerce said: “Today’s figures show the regional labour market continues to move in the right direction.

“Compared to this time last year, significant numbers of people have found work and moved out of unemployment, which can only be a good thing for our region’s economic health.

“We anticipated this improvement, as many firms tell us that they have been recruiting heavily in recent months and have further plans for expansion.

“Our most recent economic survey results back this up and suggest that positive trends could continue, as long as the right support is available for employers to invest in addressing skills gaps”

Victoria Sutherland, North East Local Enterprise Partnership (LEP) Senior Economist, also welcomed positive news in relation to the North East’s labour market.

“Today’s data shows real improvement in the labour market with more people employed and economically active and fewer people unemployed and inactive,” she said.

“The improvement in the North East’s employment rate for 16-64s is better over the past quarter than any of the other regions or nations in the UK.

“We are especially pleased to see strong growth in the information and communication sector, which includes many digital activities. Over the past 12 months, employment in this sector has increased by 11,000 or 38%.

“Our Strategic Economic Plan highlights digital as one of the key areas of opportunity for the North East, and this employment growth is just one of a number of recent signs that this sector is prospering.

“When we look more deeply into the data, we see that it’s not just the growth in employment that is encouraging, but the growth in the number of people in full-time employment, with fewer people in part-time or temporary employment because they are unable to secure full-time or permanent employment.”

Stephen Purvis, Policy North Chairman, added: “Businesses are resilient and continue to grow and employ people. That is in spite of current economic conditions rather than because of them and the underlying problem is that the North East still has the highest unemployment rate in England.

“That is why the region needs a new trading vision and new ideas that create sustainable jobs. As we are leaving the EU, Businesses just want to see us make the most of the opportunities.

“Policy North’s proposal for a Great North Free Port could create over 600,000 jobs and could be a real game changer for the North East.

“It would enable more countries to trade with us and manufacture their products in the region where we already have both the infrastructure and the skilled workforce.”

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