Out of Work: The North East's Economic Inactivity Challenge

Beneath the headline measures of unemployment lies a deeper and more challenging problem for the North East: economic inactivity. A larger share of working-age people in the region are neither in work nor looking for it than in any other part of the country, a challenge with profound consequences for the regional economy and for the individuals affected.

The Lowest Employment Rate.

The North East has the lowest employment rate of any region in the country, meaning a smaller proportion of working-age people here are in work than anywhere else. The flip side of this is a high rate of economic inactivity, which counts those who are neither working nor seeking work.

Economic inactivity is different from unemployment, which counts those who are out of work but looking for a job. It includes students, carers, those who have retired early and, significantly, those unable to work due to long-term ill health.

A Persistent Challenge.

The North East's economic inactivity rate sits well above the national average, a long-standing feature of the regional economy that has proved difficult to shift. Within the region, the challenge is greater still in some areas, with certain local authority areas seeing around a third of working-age people economically inactive.

This is not a new problem but a persistent one, rooted in the region's economic history and its particular challenges. Tackling it has long been a priority, but progress has been hard won.

The Health Connection.

The single most important driver of economic inactivity, both nationally and especially in the North East, is long-term ill health. Across the country, ill health has become the leading reason that people are out of the workforce, and the region's significant health challenges mean this weighs particularly heavily here.

This connects the region's economic challenge directly to its health challenges, with poor health keeping many people out of work. Improving the region's health is therefore essential to improving its economic prospects, and the two cannot be separated.

A Human Story.

Behind the statistics on economic inactivity are real people, many of whom would work if they could but are prevented from doing so by ill health, caring responsibilities or other barriers. It is important to approach the issue with understanding rather than judgement, recognising the genuine difficulties many people face.

For many, being out of work is not a choice but a consequence of circumstances, particularly ill health, beyond their control. Supporting people to overcome the barriers they face, where they can and wish to work, is the constructive way forward.

The Cost to the Economy.

The consequences of high economic inactivity ripple across the regional economy. A smaller workforce means less economic output, lower tax revenues and a greater burden on public services, weighing on the region's prosperity and growth.

Reducing economic inactivity, by helping people who can work to do so, would bring significant benefits both to the individuals concerned and to the wider economy. It is widely seen as one of the keys to lifting the region's economic performance.

The Path to Progress.

Tackling economic inactivity requires action on several fronts, but above all on health, given its central role in keeping people out of work. Better access to healthcare, support for people with health conditions to stay in or return to work, and efforts to prevent ill health in the first place all have a part to play.

Alongside this, support with skills, with the barriers that prevent people from working, and with the availability of suitable jobs are all important. There are no easy answers, but a combined effort across health, skills and employment offers the best hope of progress.

A Regional Priority.

For the North East, reducing economic inactivity is one of the central challenges facing its economy, bound up with the region's health, its prosperity and the opportunities available to its people. With devolution bringing new powers and a regional focus, there is an opportunity to tackle the issue in a more joined-up way.

Helping more people into work, where they can and wish to work, would transform not only the regional economy but the lives of many individuals. It is a challenge worth meeting.

Back to Work.

The North East's high level of economic inactivity, driven above all by long-term ill health, is one of the deepest challenges facing the regional economy, with consequences for prosperity, public services and the lives of many people. Tackling it requires above all an effort to improve the region's health, alongside support with skills and the barriers people face.

Approached with understanding and a constructive spirit, helping more people who can work to do so offers real benefits for individuals and the region alike. For the North East, getting more of its people back into work is central to building a more prosperous future.

The Value of Work.

At the heart of the concern about economic inactivity lies a recognition of the value of work, not only to the economy but to individuals and their wellbeing, while also acknowledging that work is not always possible or appropriate for everyone. For many people, work provides not just an income but a sense of purpose, identity, structure and social connection, and the evidence suggests that being in good work is generally beneficial for health and wellbeing as well as for financial security.

This is part of why high levels of economic inactivity are a concern, not simply for the economic output forgone but for what worklessness can mean for the individuals affected, particularly when it is involuntary and prolonged. At the same time, it is vital to approach the issue with care and compassion, recognising that for many people, ill health, disability or caring responsibilities make work genuinely difficult or impossible, and that the answer is support rather than pressure.

The goal should be to help those who can work and wish to work to overcome the barriers that prevent them, while ensuring proper support for those who cannot. This means tackling the root causes of inactivity, above all ill health, through better healthcare, prevention and support for people to stay in or return to work, as well as addressing the skills, confidence and practical barriers that can keep people out of the workforce.

It also means ensuring that work, where people can do it, is good work, secure, fairly paid and compatible with people's health and circumstances. For the North East, helping more of its people into good work, with understanding and support, offers benefits both for individuals and for the wider economy, and is central to the region's prospects.

We want to hear from you.

The North East has the lowest employment rate of any UK region, with economic inactivity driven largely by long-term ill health.

What do you think would help more people in our region into work?