HomeOur Economy 2023Our economy 2023: Indicator tables

Our Economy 2023 : Indicators

Each year, Our Economy provides tables and charts of data that assess North East progress against a range of indicators. The tables below show a summary of this data and how North East trends compare to national data. 

Introduction

In 2014, the North East Strategic Economic Plan (SEP) set out six targets for the region to achieve between 2014 and 2024.

Two of these related to additional employment and the need for much of the increase to be concentrated in high quality jobs. The other targets focused on closing the gap between the North East and England excluding London in four different headline economic and labour market metrics.

As well as these targets, the Plan set out five programmes of work that, together, were designed to deliver improvements in the North East economy. These consisted of business growth;  innovation; skills, employment, inclusion and progression; transport connectivity; and investment and infrastructure.

Progress against SEP targets

The latest available data shows that progress against these six targets has been mixed. The most recent data for four of the six covers the 12 month period July 2022 to June 2023. At that time:

  • Employment in the North East  had increased by 61,500 since 2014, over three fifths of the way to the "more jobs" target of an additional 100,000 jobs by 2024.
  • The "better jobs" target that increased employment would be driven by more jobs in managerial, professional and associate professional occupations was well on the way to being met. Employment in these roles of 82,100 had increased since 2014.
  • The gap in the employment rate between the North East and England excluding London had narrowed by 2% since 2014 but progress towards the closing the gap completely had reversed in recent quarters. 
  • The economic activity rate gap had widened by 40% rather than closing, as recent increased working age inactivity had impacted on the North East more than nationally.

The latest data for the other two targets comes from the 2021 calendar year:

  • The gap between the private sector employment densities of the North East and England excluding London was 9% lower than in 2015. However, the statistics were provisional, with scheduled changes to population estimates likely to lead to revisions.
  • The gap in GVA per hour had increased since 2014, rather than decreasing as required by the target.

More Jobs

To increase employment within the North East LEP area by 100,000 between 2014 and 2024

Progress:
By Jul 2022-Jun 2023, employment in all occupations in the North East LEP area had increased by 61,500.

Impact of Covid-19:
The furlough scheme and the recruitment of additional health workers delayed the impact of the pandemic on employment until after 2020. Since that date, employment has decreased by 8,100, despite an increase of 7,800 in the most recent year.

More information:
Evidence Hub: Strategic Economic Plan targets 

Better Jobs

To ensure that 70% of the net increase in employment by 2024 is in managerial, professional and associate professional occupations

Progress:
By Jul 2022-Jun 2023, North East employment in these occupation groups in the  had increased by 82,100, equivalent to 133% of the net growth in employment in all occupations

Impact of Covid-19:
Since 2020, the total has decreased by 2,500, despite an increase of 10,300 in the latest year.

More information:
Evidence Hub: Strategic Economic Plan targets 

Employment Rate

To completely close the gap between the North East LEP area’s working age (16-64) employment rate and the rate for England excluding London by 2024.

Progress:
By Jul 22-Jun 23, the gap between the North East LEP area and England excluding London had narrowed slightly (by 2%) when compared with the Apr 13-Mar 14 period.

Impact of Covid-19:
Compared to 2020, the latest North East rate was 1.2 percentage points lower, while the England excluding London rate had increased by 0.2 percentage points, reversing progress towards closing the gap.

More information:
Evidence Hub: Strategic Economic Plan targets  

Economic Activity Rate

To reduce by 50% the gap between the North East LEP area’s working age (16-64) economic activity rate and that of England excluding London by 2024

Progress:
By Jul 2022-Jun 2023, the gap between the North East and England excluding London rates had increased by 40% when compared with the Apr 13-Mar 14 period.

Impact of Covid-19:
Compared to 2020, the latest North East rate was 3.1 percentage points lower, compared to a 0.5 percentage point decrease for England excluding London rate, resulting in a widening of the gap between the two rates.

More information:
Evidence Hub: Strategic Economic Plan targets 

Private Sector Employment Density

Increase the proportion of people employed by the private sector in the North East and close the gap with England excluding London in private sector employment density by 50% by 2024.

Progress:
Between 2015 and 2021 the gap in private sector employment density between the North East and England excluding London narrowed by 9% according to this measure, although the latest data is provisional only.

Impact of Covid-19:
Private sector employment in the North East decreased by 0.3% between 2019 and 2021 but this was a smaller percentage decrease than for England excluding London (down 0.7%).  Due to proposed changes to population estimates, the impact of the pandemic on the rate is unclear.

More information:
Evidence Hub: Strategic Economic Plan targets 

Productivity (GVA per hour)

To reduce the gap between the North East LEP area and England excluding London on GVA per hour worked by 50% by 2024. 

Progress:
Between 2014 and 2021, the gap between the North East and England excluding London widened by 43%. In both areas productivity had risen over this period, but the larger increase was in England excluding London.

Impact of Covid-19:
In 2021, GVA per hour decreased for both the North East and England excluding London, However the fall in the North East was larger, leading to an increase in the gap with england excluding London.

More information:
Evidence Hub: Strategic Economic Plan targets 

Tables of Key Indicators

Indicators that provide measurements of progress in the North East LEP area's economy are shown in tables in the tabs below. The latest available date for these datasets varies, with some not being updated since the 2022 Our Economy publication.

In particular, population totals that are quoted or used to calculate rates are mid-2021 estimates. Mid year estimates prior to that date have not been retrospectively revised to take account of new information from the Census, so some rates are likely to be amended over the next year. Additionally, some other datasets are not annual, most notably those relating to employer skills requirements and business innovation.

Where possible, these indicators are for the North East LEP area. However, sometimes only regional data is available, where the North East region also includes the Tees Valley LEP area. Occasionally, the data is only available for the North (the North East, the North West and Yorkshire and the Humber).

Similarly, our default national comparison is England excluding London but sometimes, England, Great Britain or the UK is used.

Economic Performance

The most recent key indicators for economic performance in the North East show that, since 2014:

  • GDP, GDP per head and productivity have all increased;
  • The proportion of the population that is working age (16 to 64) has decreased;
  • The working age economic activity rate has decreased;
  • the unemployment rate has fallen. 

The North East's trends in unemployment in this period have been better than the national equivalents but this has not been true for the economic activity rate, productivity rate or GDP per head.

Business Growth

The most recent key indicators measuring business growth performance in the North East show that, since 2014:

  • The number of businesses per head has increased;
  • The business birth rate and death rate have both increased;
  • The business survival rate has fallen, as has the proportion of high growth businesses;
  • The values of goods and services exports per adult have both increased.

The North East's trends in businesses per head and business birth rates in this period have been better than the national equivalents. This has not been true for any of the other indicators.

Innovation

The most recent key indicators measuring innovation performance in the North East show that, since 2014:

  • The percentages of businesses that are innovation active or involved in product, process or wider innovation have all decreased;
  • Business, government and higher education expenditure on R&D per head have all increased in the three Northern regions since 2018, as has its proportion of GVA;
  • The percentage of people employed as professionals in science, research, engineering and technology has increased, with the percentage of equivalent associate professionals unchanged;
  • The rate of patents granted per head has also increased.

The North East's trends in businesses involved in wider innovation, employment as STEM associate professionals and patent rates have all been better than the national equivalents. This is also true for the north's level of business expenditure on R&D but not for any of the other indicators.

Skills and employment

The most recent key indicators measuring employment and skills performance in the North East show that, since 2014:

  • The working age (16 to 64) employment density has increased;
  • The proportion of the population that is working age has decreased;
  • The working age employment rate has increased, but the working age economic activity rate has fallen;
  • The proportion of working age people with degree level qualifications has increased, while the proportion with no qualifications has decreased;
  • The percentage of vacancies that are skills shortage vacancies has grown but the percentage of employers with skills gaps has fallen;
  • The working age economic inactivity rate has increased, but the unemployment rates for working age, younger and older workers have all decreased;
  • Average full-time employee pay has increased.

The North East's trends in private sector employment density; the percentage of workers with level 4 qualifications; the proportion of employers with skills gaps; and the working age and older workers unemployment rates have all been better than the national equivalents. This has not been true for any of the other indicators.

Transport

The most recent key indicators measuring transport performance in the North East show that, since 2014:

  • Public spending on transport per head has increased;
  • Metro passenger journeys per head and passenger miles have both decreased;
  • Bus passenger journeys per head and vehicle miles have both decreased;
  • The volume of freight per head has also decreased.

Trends in passenger transport journeys and freight reflect the impact of the Covid-19 pandemic. The North East's trends for bus journeys per head and bus vehicle miles have  both been better than the national equivalents. This has not been true for the other four indicators.

Investment and infrastructure

The most recent key indicators measuring aspects of the infrastructure in the North East show that, since 2014:

  • The rate of new dwellings has increased;
  • Business floorspace per head has slightly increased, as has its rateable value per sq.m;
  • The rate of major development planning application approvals has increased;
  • On average, the proportions of premises with superfast broadband and of indoor premises with comprehensive 4G mobile coverage within North East local authority areas have increased.

The North East's business floorspace trends have both been better than the national equivalents. The same is true for the trend in in major development approval rates. However, this has not been true for the trend in additional dwellings. It is not possible to compare North East broadband and mobile data trends with national equivalents.

Data Sources

The sections below list the datasets from which the tables have been compiled and includes links to the relevant pages on the data section of the North East Evidence Hub. These pages usually provide more detailed information and, in many cases, include data at a sub-regional geographic level. Unlike the Our Economy pages, which will remain a snapshot, the data pages are updated regularly. 

Economic Performance

Sources:

  • Regional economic activity by GDP (ONS)
  • Mid year population estimates (ONS)
  • Annual Population Survey (ONS via Nomis)
  • Sub-regional productivity (ONS)

Also on the Evidence Hub:
Productivity Data

Business Growth

Sources

  • Business counts (ONS)
  • Business demography (ONS)
  • Mid-year population estimates (ONS)
  • Regional trade data (HMRC)
  • International Trade in Services (ONS)

Also on the Evidence Hub:
Businesses Data

Innovation

Sources:

  • UK Innovation Survey (BEIS)
  • Annual Population Survey Workplace Analysis (ONS via Nomis)
  • Business Expenditure on R&D (ONS)
  • Country and regional breakdown of expenditure on R&D in the UK (ONS)
  • Patents data (Intellectual Property Office)

Also on the Evidence Hub:
Innovation Data

Skills and Employment

Sources:

  • Business Register and Employment Survey (ONS via Nomis)
  • Population estimates (ONS via Nomis)
  • Annual Population Survey (ONS via Nomis)
  • Employer Skills Survey (DfE)
  • Annual Survey of Hours and Earnings workplace analysis (ONS via Nomis)

Also on the Evidence Hub:
Employment and Skills Data

Transport

Sources:

  • Identifiable expenditure on services (HMT)
  • Light rail and tram statistics (DFT)
  • Local bus services statistics (DFT)
  • Freight data (DFT)
  • Mid-year population estimates (ONS)

Also on the Evidence Hub:
Transport data

Investment and Infrastructure

Sources:

  • Net additional dwellings by local authority (DLUHC)
  • Non-domestic rating: stock of properties including business floorspace (VOA)
  • District planning application statistics (DLUHC)
  • Connected Nations (Ofcom)

Also on the Evidence Hub:
Infrastructure Data

Other Our Economy pages

This is just one part of our evidence base for Our Economy this year, you can also read our three spotlight pages on inclusive productivity below. These cover the economic theory behind inclusive productivity, the current data on inclusive productivity in the North East, and international case studies which show how similar regions globally have balanced the requirements of inclusive growth.

Theories of inclusive productivity

Theories of inclusive productivity

Find out more
Inclusive productivity in the North East

Inclusive productivity in the North East

Find out more
International case studies

International case studies

Find out more