North East regional labour market statistics

The latest regional labour market statistics

On Tuesday 16 April 2024, the Office of National Statistics (ONS) released regional labour market data for the December 2023-February 2024 three-month period. 

The regional labour market release includes data based on responses to the ONS Labour Force Survey (LFS). However, falling response rates mean that statistics from this source have become increasingly volatile and are not currently considered as National Statistics. They are, instead, designated as “official statistics in development”. This is usually a stage that new statistics go through before becoming “official statistics” but, in this case, it reflects changes to an existing dataset that may still be ongoing. 

There are nine English regions within the geography used for this release, with the North East region combining the Tees Valley and new North East combined authority areas.

Key points from the data

In the Dec 2023-Feb 2024 three-month period, the North East region was estimated to have had:

• The lowest working age employment rate (70.4%, Eng. 74.9%) 
• the second lowest unemployment rate (3.6% of economically active adults, Eng. 4.3%) 
• the highest working age economic inactivity rate (26.9%, Eng. 21.7%).

Compared to a year earlier (Dec 22-Feb 23):

• Employment in the North East region was estimated to have fallen by 26,100
• the working age (16 to 64) employment rate was estimated to have fallen by 1.3 percentage points (pp) from 71.7%
• four of the nine English regions had larger pp decreases, with two (London and West Midlands) having employment rate increases. England’s rate decreased by 0.7pp over the year
• North East unemployment was estimated to have decreased by 13,400, with the rate decreasing by 0.9 pp from 4.5%
• this was the largest regional pp decrease. England’s rate was 0.3 pp higher
• working age economic inactivity in the region was 38,900 higher. The rate increased by 2.2 pp from 24.7%
• this was the largest pp increase among the English regions. England’s rate increased by 0.5 pp over the year.

Compared to the previous quarter (Sep-Nov 23):

The latest ONS release states that estimates of quarterly change should be treated with additional caution. With this caveat:

• Employment was estimated to have fallen by 15,000 in the North East region in the latest quarter, with the working age rate decreasing by 1.3 pp
• the decrease in employment was accompanied by an estimated decrease in unemployment of 9,500 and an increase of 33,600 in working age economic inactivity
• the large quarterly increase in inactivity was mirrored in the other two Northern English regions. 

Employee data 

The ONS publishes monthly estimates of the number of employees and their median monthly pay. These statistics are based on information about people who are employed in at least one job paid through Pay As You Earn (PAYE). Early, seasonally adjusted, estimates for March 2024 indicate that:

• The number of employees in the North East region was almost 8,900 higher than in March 2023, with estimates for the North East LEP area being 6,400 higher
• the regional increase was largest among employees in the 35 to 49 and the 65 and over age groups, up by 6,100 and 3,000, respectively
• median monthly payroll pay in the North East region increased by about 6.7% compared with a year earlier, a higher percentage increase than nationally (+5.6%)
• these percentage pay increases were higher than the latest Consumer Prices Index (CPI) annual rate of inflation (3.4% in February 2024)
• North East regional median employee pay was about 94% of the UK equivalent. 

Why we use regional labour market data

Where possible, the North East Evidence Hub focuses on statistics at LEP or local authority level to monitor trends in the North East economy. The labour market data section of the Hub provides comprehensive links to information at that level.

Local labour market statistics are usually released every three months and are mainly based on surveys over a 12-month period. The monthly regional labour market release provides a more timely snapshot of headline trends for an area that includes both the North East and Tees Valley LEP areas, although the detail is more limited.

The ONS publish the regional labour market bulletins on their website. Each month they also publish a national UK labour market overview.