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Strategic Economic Plan Targets

Measuring progress against the six headline targets set out in the North East Strategic Economic Plan in 2014

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The targets

The North East Strategic Economic Plan (SEP) was published in 2014 and sets out an evidence-led, ten year plan that focuses on developing areas of the North East economy and on programmes of work that support the economy. Six headline targets measure progress of the SEP. Two of these relate to the creation of more and better jobs and the other four focus on closing the gap in economic performance between the North East and England (excluding London). 

More jobs

Increase employment by 100,000 by 2024

Better jobs

70% of additional employment from 2014 will be in managerial, professional, associate professional and technical occupations

Closing the employment rate gap

Completely close the gap between the North East and England excluding London in the working age employment rate by 2024

Reducing the economic activity rate gap

Reduce the gap between the North East and England excluding London in the working age economic activity rate by 50% by 2024

Reducing the private sector employment density gap

Reduce the gap between the North East and England excluding London in private sector employment per head by 50% by 2024

Reducing the productivity gap

Reduce the gap between the North East and England excluding London in GVA per hour worked by 50% by 2024

Progress on the targets

In 2014, when the North East LEP’s Strategic Economic Plan was published, it contained six targets to monitor the region’s economic progress. 

At that time, it would have been impossible to predict the challenges of the following decade, including the seismic economic impact of the Covid-19 crisis, its long-term impact on health and global supply chain disruption. 

Looking back now, the data is a story of progress and resilience, and a story of how global trends have shaped the North East. 

Since 2014 we’ve added 82,900 new jobs to the North East economy. This is more than four fifths of our more jobs target and a recovery from the losses caused by the Covid-19 employment shock. Importantly we’ve also added over 100,000 professional and managerial opportunities to the North East, meaning the quality of jobs available to our residents has improved. 

Despite every headwind therefore, there are more and better jobs in the North East in 2024 than there were in 2014. 

However, while overall employment has recovered from Covid-19, the North East has been disproportionately affected by the post-Covid-19 rise in economic inactivity associated with ill health. 

In this context we need to ensure opportunities in our region are available to all, with an emphasis on the health inequalities and skills gaps that prevent some groups from participating fully in our economy. 

Covid-19 also had a particular impact on some of our most productive sectors such as the automotive industry, while our export-oriented economy has been exposed to changes in the global trading environment such as the war in Ukraine and supply chain disruption. 

As we highlighted at Our Economy 2023 productivity is one of the most important determinants of broader living standards in the region. As the UK seeks to renew its productivity growth the innovative sectors in the North East need to be a key part of that resurgence. 

Looking forward, global economic trends will continue to affect the North East economy over the next decade too. A continued focus on these key indicators, coupled with coordinated action across and beyond the region, can see the North East navigate future challenges too and build a better regional economy for all. 

More and better jobs

    Progress

    By the Jan 23-Dec 23 period:

    • employment in all occupations in the North East had increased by 82,900 to 894,400, more than four fifths of the way to the 2024 target
    • employment in 'better jobs' occupations had increased by 104,400, equivalent to 126% of the net growth in employment in all occupations, well above the 70% target
    • the increase in North East employment in 'better jobs' occupations took place at the same time as a decrease in total employment within other occupations.

    The impact of COVID-19

    The furlough scheme and the recruitment of additional health workers delayed decreases in employment until after the Jan-Dec 2020 period. Compared to 2020:

    • the latest North East employment total was 13,300 higher, driven by a 23,300 increase in the latest year
    • employment in 'better jobs' occupations was 19,800 higher and had increased by 31,800 in the latest year
    • this measure of employment does not include unfilled vacancies, which have recently been at a high level for some 'better jobs' occupations.

    Definitions

    Occupations described as "better jobs" are managers, directors and senior officials; professionals (such as civil engineers and doctors); and associate professionals and technical workers (such as laboratory technicians and graphic designers).
    The measure used for these targets is workplace employment and the totals, therefore, exclude North East residents who commute to other areas to work or who work offshore or overseas. The totals include in-commuters who work in the North East.
    We use the SOC 2010 occupational classification as it provides a more consistent time series than the more recent SOC 2020.

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    North East employment (all occupations)
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    North East employment ('better job' occupations)

    Employment rate

      Progress

      By the Jan 23-Dec 23 period:

      • the gap between the employment rates of the North East and England excluding London had narrowed by 38%, almost two fifths of the way to the 2024 target of completely closing the gap
      • in the latest year the North East rate increased by 2.6 percentage points (pp), a larger increase than nationally. This resulted in a closing of the gap, particularly in the latest quarter
      • since 2014, the North East rate had increased by 6.0 pp, compared to a 4.2 pp increase in England excluding London.

      The impact of COVID-19

      The furlough scheme and the recruitment of additional health workers delayed decreases in employment until after the Jan-Dec 2020 period. Compared to 2020:

      • the latest North East rate was 1.1 pp higher
      • the latest England excluding London rate was 0.6 pp higher.

      Definitions

      The employment rate in this target is the number of residents aged 16 to 64 who are in employment expressed as a percentage of the total resident population in this age group. The 16 to 64 age group is used in official statistics as a proxy for the working age population.
      People in employment include full-time and part-time employees and self-employed workers.
      For calculations of progress, the gap is defined as a percentage of the England excluding London rate.

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      Employment rate
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      Employment rate gap (% of England excl. London)

      Economic activity rate

      Progress

      By the Jan 23-Dec 23 period:

      • the gap between the economic activity rates of the North East and England excluding London had decreased by 5%, compared to the target of closing the gap by 50%
      • the North East rate had increased by 1.7 pp in the latest year, compared to a 0.6 pp increase for England excluding London
      • this had reversed the previous trend of a widening gap
      • the latest North East rate was 1.6 pp higher than in 2014, compared to a 1.5 pp increase in England excluding London.

      The impact of COVID-19

      The furlough scheme and the recruitment of additional health workers delayed decreases in economic activity until after the Jan-Dec 2020 period. Compared to 2020:

      • the latest North East rate was 1.3 pp lower
      • the latest England excluding London rate was 0.2 pp lower.

      Definitions

      The economic activity rate in this target is the number of residents aged 16 to 64 who are economically active expressed as a percentage of the total resident population in this age group. The 16 to 64 age group is used in official statistics as a proxy for the working age population.
      Economically active people are those who are either in employment or unemployed and actively seeking work.
      For calculations of progress, the gap is defined as a percentage of the England excluding London rate.

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      Economic activity rate
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      Economic activity rate gap (% of Eng. excl. London)

      Private sector employment density

      Progress

      Between 2015 and 2022:

      • the gap between the densities of the North East and England excluding London increased by 18%, rather than decreasing, as required by the target
      • since 2015, North East private sector employment had increased by 0.4% compared to a 6.2% increase in England excluding London
      • although the England excluding London 16-64 population has also increased at a faster rate than that of the North East, its private sector density has still increased much faster than that of the North East.

      The impact of COVID-19

      Between 2019 and 2021:

      • private sector employment in the North East decreased by 0.3%
      • the England excluding London total decreased by 0.7% meaning that the gap in density from the North East closed slightly
      • in the following year, the North East total continued to decrease (by 1.3%) but the England excluding London increased (by 1.8%)
      • the gap in density to England excluding London, therefore, increasing in the latest year.

      Definitions

      The private sector employment density is the number of people employed in VAT or PAYE registered private sector enterprises expressed as a percentage of the resident population aged 16 to 64.
      The employment data source (the Business Register Employment Survey or BRES) is annual and is based on information from businesses rather than from individuals. The other four employment targets use data from household surveys. Employment in non-registered enterprises is excluded. BRES only has consistent data from 2015 onwards. 
      For calculations of progress, the gap is defined as a percentage of the England excluding London density.

      Private sector employment density
      Employment density gap (% of Eng. excl. London)

      Productivity

        Progress

        Between 2014 and 2021:

        • the gap between the GVA per hour of the North East and England excluding London increased by 43%, rather than decreasing as in the target
        • North East GVA per hour increased by 16.9% compared to a 21.3% increase in England excluding London.

        The impact of COVID-19

        The latest available data covers the first two years of COVID-19 impacting on the economy. Between 2019 and 2021:

        • GVA per hour in the North East increased by 2.2%
        • in England excluding London it increased by 7.2%
        • North East GVA increased by 0.3% but hours worked fell by 1.8%

        Definitions

        GVA (Gross Value Added) measures the contribution to the economy of each individual producer, industry or region in the UK. GVA per hour worked is the official recommended productivity measure as it takes account of local differences in average working patterns.
        For calculations of progress, the gap is defined as a percentage of the England excluding London rate.

        GVA per hour worked
        GVA per hour gap (% of England excl. London)
        Read more about the Strategic Economic Plan here