Educational attainment in the North East lags behind national levels, with more residents lacking formal qualifications than the national average. Although degree-level attainment is increasing, progress remains slower than in most other parts of the country, apart from London. Lower school performance, combined with demographic trends, disproportionately impacts children on Free School Meals. Also, participation in workplace training has dropped significantly and now trails behind the national average.
Education and skills
Labour Market
Employment refers to people currently working, while unemployment covers those not working but actively seeking work. Economic inactivity refers to individuals who are not currently working or looking for work, such as students, retirees, or carers.
Employment among working-age adults in the North East has declined, with the current rate of 70.3% ranking second lowest among English Combined Authorities. Male employment is significantly below the national average, while the female rate shows a smaller gap.
Economic inactivity has climbed to 26.3%, its highest since 2013 and the highest in the country. Despite a slight rise in unemployment, levels remain historically low. Worklessness among North East working age people is increasingly due to absence from the labour market rather than unsuccessful job seeking.
(April 2024 to March 2025 data)
51,900
total job adverts in the North East in Q3 of 2025/26
8%
of North East residents are economically inactive due to ill-health
40%
of Universal Credit claimants have claims lasting 3 years of more
£71
weekly difference in median full time earnings between NE and England
67%
of NE children living in relative poverty are in working households
Economic status of the North East as 100 adults
The annual population survey data is used here to illustrate what the economic status of the North East population is when represented by 100 adults.
This shows that 55 people would be in employment (full time and part time) and 45 would be unemployed or economically inactive.
Inclusion and deprivation
The North East has a higher percentage of children in low income families than nationally and also has a high amount of child poverty, with around 30% of children in the CA area living in relative poverty after housing costs. Extent and severity of deprivation is more common in the North East than nationally, particularly health and employment related deprivation.
Percentage of North East population in each English Indices of Multiple Deprivation decile, 2025
The English Indicies of Multiple Deprivation (IMD) is a measure of relative deprivation used to identify areas of low and high deprivation. The data is based on a range of metrics across seven domains: income, employment, education, health, crime, barriers to housing and services, and living environment. This information is used to to rank the areas, and the rank is grouped into deciles, with areas in decile 1 being the most deprived, and decile 10 being the least deprived.
The North East has nearly 35% of residents living in the two most deprived deciles, highlighting a relatively high level of deprivation compared to the rest of the country.
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This map shows the IMD of each Lower Super Output areas (LSOAs) across the North East.
The deeper colours reflect the LSOAs in the most deprived deciles (1 and 2). There are a higher number of these areas across County Durham, South Tyneside and Northumberland.
Health and Quality of Life
Healthy life expectancy at birth by sex in 2021 to 2023
Life expectancy trends
The North East remains the region with the lowest life expectancy in England .For 2021–2023, male life expectancy at birth in the North East is about 77.4 years, down from 78.0 in 2017–2019.Female life expectancy is 81.4 years, down from 81.8 in 2017–2019.
Healthy Life Expectancy (HLE)
For males in 2021–2023, HLE in the North East is 56.9 years, down 2.5 years compared with 2017–2019. For females, HLE is 57.5 years, down ~1.7 years from 2017–2019.
These figures place the North East as having the lowest healthy life expectancy of all English regions. The decline in life expectancy and in healthy life expectancy indicates that gains made over years have stalled or been reversed, in part due to the COVID-19 pandemic and associated mortality. Poor health in the North East contributes to lower life expectancy, with impacting factors including above average tobacco and alcohol consumption, and effects of childhood obesity above the national average.
Life satisfaction per LA, 2012-2023
Life satisfaction levels across local authorities remained broadly stable between 2012 and 2023, with minor fluctuations (this is from a score out of 10). A noticeable dip occurred during 2020–2021, likely reflecting the impact of the COVID-19 pandemic, followed by a partial recovery by 2022–23. Nationally, women were more likely than men to report high levels of anxiety—26.6% compared with 20.0%.
As of March 2023, poor personal well-being (defined by low life satisfaction, low feelings of worthwhileness and happiness, and high anxiety) was most prevalent among adults who reported “very bad” health, identified as having a disability, were separated and held no formal qualifications.
Looking ahead
Employment projections
According to Department for Education projections, the North East will need approximately half a million new employees by 2035, largely due to the need to replace workers leaving the labour market. Over half of these roles will require candidates with degree-level qualifications or higher, and around a third of the total demand will be concentrated in health, education, and public administration. There will also be significant opportunities in high-skilled private sector services, while the region faces additional challenges associated with an ageing manufacturing workforce, highlighting the importance of succession planning and skills development in this sector.
More of the Local Growth Plan
Section 1: Introduction and context
This section offers an overview of our local assets, population and geography.
Section 2: Our economy
The economy brings together data on regional productivity, GDP, our key sectors and investment.
Section 3: Our people
📍 You are here
Our people covers evidence on the skills of our residents, the labour market, deprivation and quality of life.
Section 4: Place
Place includes insight on the region's housing, climate, transport and tourism.
Further analysis
If you are interested in understanding more about our people, the labour market and regional skills, please explore our wider analysis.
Regional labour market statistics
The most up to date sub-national data, covering the North East and Tees Valley Combined Authority.
Employment rate
Trends in North East employment, including the headline working age rate.
Economic activity
Economically active people are either in employment or unemployed (not in work but actively seeking employment.
Employment by nationality
Data on the employment of EU and Non-EU nationals in the North East region.
Employment by occupation
Using 2021 census data, understanding the occupations within which North East residents work, with area comparisons.
Not in Education, Employment or Training
Rates of participation in education and training of those aged 16 - 17, and under 25s.