The North East sees a slight drop in worklessness, but challenges remain for local businesses and the economy overall
Newcastle: The North East is seeing a bit of a shift in employment. Recent stats show that while the area still has the highest worklessness rate in England, more folks are finding jobs. The unemployment rate is holding steady at 5.4%, but the number of people not working has dropped to 25.5%. So, about 70.4% of people are now employed, which is still the lowest in the country.
People who aren’t working include retirees, caregivers, and those with long-term health issues. Nationally, the UK’s unemployment ticked up to 4.4%, and there was a drop of 47,000 payrolled jobs in December. That’s the biggest fall since late 2020. But on the bright side, wages are rising, with average pay increasing by 5.6% recently, outpacing inflation.
Josh Maratty from the North East Chamber of Commerce shared that local businesses have a mixed outlook. They’re worried about rising costs and workforce issues, but there are some good signs too. For instance, Nissan and JATCO are investing £50 million to set up a new plant in Sunderland, which will create 183 high-value jobs and support over 400 more in the supply chain.
There’s also exciting news in the creative sector. The Government is putting £5 million into a new glass-making facility in Sunderland and another £5 million for a Centre for Writing in Newcastle. This new writing center is expected to help over 100 trainees and attract 35 creative businesses to the area. It’s a solid commitment to boosting the North East’s industry, but more government support is still needed for ongoing growth.
Work and Pensions Secretary Liz Kendall emphasized the need to get Britain working. She mentioned that the government is focused on creating opportunities and breaking down barriers to success everywhere. With wages on the rise, they’re working to improve living standards and stimulate the economy through various reforms.
In other news, company collapses in England and Wales dropped last year, but experts warn that uncertainty still looms for businesses. The Insolvency Service reported that 23,872 companies went under in 2024, a 5% decrease from the previous year. However, this number is still higher than most of the last decade, reminiscent of the 2008 financial crisis.
