Member Article

North East employment rises 19,000 over the quarter but is it enough?

The Office for National Statistics has today revealed that unemployment has continued to fall in Britain, while wage growth outpaced inflation at the fastest rate in almost five years.

Yet, whilst employment has risen in the North East, the region still has a consideraly higher rate of unemployment than the national average.

Headline figures for the North East include:

• Employment in the North East stands at 1,157,000 or 70% – a rise of 19,000 over the quarter and increase of 43,000 over the year. This compares to a rate of 73.2% nationally.
• North East unemployment stands at 102,000 or 8.0% – a fall of 15,000 over the quarter and 23,000 over the year. This compares to a rate of 5.7% nationally.
• The claimant count stands at 49,000 or 4.1% in the North East, compared to 2.5% nationally.

NECC Policy and Research Manager, Mark Stephenson, said: “Today’s figures continue the great start to 2015 we saw established in January. Every indicator is heading in the right direction and over 43,000 more people in work than this time last year.

“Employment is at a record high for the third successive month thanks mostly to businesses, while unemployment is at its lowest in over five years – down 23,000 on a year ago. The claimant count continues its long term decrease.

“While the North East unemployment rate remains too high, moving to 8% represents a huge symbolic victory. In spite of the economic progress we have seen in the past two years, regional unemployment has remained largely static, so to see it falling significantly in recent months is very encouraging.

“The unemployment rate dropped as fast as anywhere in the country while the increase in employment was bettered only by one other region.

“The North East business community has made the majority of this progress possible in the context of continuing retrenchment in the public sector, which just goes to underline the necessity for pro-business public policy placing a premium on development, investment, employment and growth.

“Ahead of a forthcoming budget and general election it is vital that political parties understand and safeguard the role that businesses play for the well-being of our country.”

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