Economic inactivity rate

The economically inactive are non-workers who are not actively seeking employment. With information about reasons for inactivity and comparisons by sex and age group.

Labour market Poverty and deprivation Non-workers Low income and deprivation
Download as a PDF

Introduction

The latest local labour market statistics were released on 17th July 2025. They are based on responses to the Annual Population Survey (APS) over a 12-month period from April 2024 to March 2025. The next release will be in October 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 trends and comparisons

26.3%

North East economic inactivity rate

(Apr 24-Mar 25)
% of residents aged 16 to 64.
Highest rate since 2013,
above UK excl. London rate (21.8%).

+1.1 pp

compared to a year earlier

expressed in percentage points (pp)
UK excl. London rate up 0.3 pp.
Local data can be volatile
due to smaller sample sizes.

1st

Highest among 15 similar areas

comparing the English
CA (combined authority) areas.
North East rate 2.1 pp above
the CA area median.

31.0%

South Tyneside economic inactivity rate

the highest rate among the
seven North East
local authority areas.
Lowest: Gateshead (21.2%)


Inactivity by sex and age

28.2%

North East female economic inactivity rate

(Apr 24-Mar 25, 16 to 64).
Above the UK excluding London rate
(25.1%).
Higher than the male rate...

24.4%

North East male economic inactivity rate

Above the UK excluding London rate
(18.4%).
The gap is wider than for North East females.

42.7%

male 16 to 24 rate

Highest of eight age/sex combinations.
Female equivalent: 39.9%,
the latter below UK excl. London rate.
NE rate higher in the other seven groups,
gap is largest for males aged 25 to 34.

40%

aged 50 to 64

out of all working age (16-64)
economically inactive
28% aged under 25.
Females 54% of the total.


Reasons for North East inactivity

35%

of North East economic inactivity due to ill-health

(Apr 24-Mar 25, 16-64)
23% due to study,
17% caring roles,
15% early retirement,
10% other

9.2%

inactivity rate due to ill-health

(North East, aged 16-64)
5.9% due to study,
4.5% caring roles,
3.9% early retirement,
2.7% other.

long-term increase in the ill-health inactivity rate

Unchanged from a year earlier,
highest rate since 2005/06.
113,400 inactive due to ill-health,
up 21,100 in latest five years.

9.3%

North East male ill-health inactivity rate

female rate: 9.1%
UK excl. London rates:
female: 7.2%
male: 6.6%.


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 (source)

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. 

ONS regional labour market statistics (source)

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