Economic inactivity rate

The economically inactive are non-workers who are not actively seeking employment. Including information about the main reason for inactivity and comparisons by sex and age group.

Labour market Poverty and deprivation
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Introduction

The latest local labour market statistics were released on 21st January 2025. They are based on responses to the Annual Population Survey (APS) over a 12-month period between October 2023 and September 2024. The next release will be in April 2025.

The headline economic inactivity rate measures the proportion of working age residents of an area who are not in employment and not actively seeking employment.  The remainder of the working age population are either employed or unemployed. The 16 to 64 age group is used by the ONS as a proxy for working age, partly to simplify historical and international comparisons. 

Local labour market statistics are updated each quarter, with the latest time period having a nine month overlap with that of the previous release. The time series charts on this page follow ONS guidance and compare non-overlapping periods.


Inactivity rate trends and comparisons

25.8%

North East economic inactivity rate

(Oct 23-Sep 24)
% of residents aged 16 to 64.
Above the England excluding London rate (21.5%).

-0.2 pp

compared to a year earlier

expressed in percentage points (pp)
England excluding London rate increased by 0.5 pp.

3rd

highest among nine similar areas

comparing the English combined authority areas in the north and midlands.

32.3%

South Tyneside economic inactivity rate

the highest rate among the seven
North East local authority areas.
Lowest: Gateshead (21.8%)


Inactivity by sex and age

28.0%

female economic inactivity rate

(Oct 23-Sep 24, 16 to 64).
Above England excluding London rate (24.8%)
Higher than the male rate..

23.5%

male economic inactivity rate

Above the England excluding London rate (18.1%).
The gap is wider than for females.

37.0%

female 16 to 24 rate

Highest of the eight age/sex combinations.
Male equivalent: 35.2%.
Both below England excluding London rates.
North East higher in the other six groups,
gap is largest for males aged 25 to 34.

41%

aged 50 to 64

out of all inactive (16 to 64 ).
24% aged under 25.
Females and males, respectively,
55% and 45% of the total.


Reasons for North East inactivity

38%

of inactivity due to ill-health

(Oct 23-Sep 24, 16-64)
21% due to study,
18% caring roles,
14% early retirement,
9% other

9.8%

inactivity rate due to ill-health

(aged 16-64)
5.5% due to study
4.6% caring roles
3.6% early retirement
2.2% other

increasing inactivity due to ill-health

highest recorded 16-64 rate
(in 20 years of North East data)
121,000 inactive due to ill-health,
up 33,000 in last five years.

10.3%

female inactivity rate due to ill-health

male rate: 9.3%
England excluding London:
female rate: 7.0%
male rate: 6.1%


Further analysis

The evidence hub includes other data reports that provide information about non workers within the labour market. Specifically, it includes reports about unemployment and jobseekers benefit claimants.

Most of the raw data for these reports can be downloaded from the Office for National Statistics (ONS).

Unemployment rate

Statistics about the percentage of economically active people who are seeking employment.

Claimant count

A measure of people claiming benefit because they are seeking employment.

Economic activity rate

Information about the percentage of working age people who are not economically inactive.

Labour market homepage

The evidence hub's labour market landing page. With links to all data reports about employment, unemployment, economic inactivity, and pay.

Nomis labour market statistics website

An ONS site providing a flexible way to access up-to-date official statistics for local areas. Also includes population estimates and some economic data. 

Regional labour market statistics

Labour market statistics for the broader North East region. Updated monthly and more up to date than combined authority level data, but less detailed.