The North East Strategic Economic Plan (SEP) was published in 2014 and sets out an evidence-led, ten year plan that focuses on developing areas of the North East economy and on programmes of work that support the economy. Six headline targets measure progress of the SEP. Two of these relate to the creation of more and better jobs and the other four focus on closing the gap in economic performance between the North East and England (excluding London).
Increase employment by 100,000 by 2024
70% of additional employment from 2014 will be in managerial, professional, associate professional and technical occupations
Completely close the gap between the North East and England excluding London in the working age employment rate by 2024
Reduce the gap between the North East and England excluding London in the working age economic activity rate by 50% by 2024
Reduce the gap between the North East and England excluding London in private sector employment per head by 50% by 2024
Reduce the gap between the North East and England excluding London in GVA per hour worked by 50% by 2024
In 2014, when the North East LEP’s Strategic Economic Plan was published, it contained six targets to monitor the region’s economic progress.
At that time, it would have been impossible to predict the challenges of the following decade, including the seismic economic impact of the Covid-19 crisis, its long-term impact on health and global supply chain disruption.
Looking back now, the data is a story of progress and resilience, and a story of how global trends have shaped the North East.
Since 2014 we’ve added 82,900 new jobs to the North East economy. This is more than four fifths of our more jobs target and a recovery from the losses caused by the Covid-19 employment shock. Importantly we’ve also added over 100,000 professional and managerial opportunities to the North East, meaning the quality of jobs available to our residents has improved.
Despite every headwind therefore, there are more and better jobs in the North East in 2024 than there were in 2014.
However, while overall employment has recovered from Covid-19, the North East has been disproportionately affected by the post-Covid-19 rise in economic inactivity associated with ill health.
In this context we need to ensure opportunities in our region are available to all, with an emphasis on the health inequalities and skills gaps that prevent some groups from participating fully in our economy.
Covid-19 also had a particular impact on some of our most productive sectors such as the automotive industry, while our export-oriented economy has been exposed to changes in the global trading environment such as the war in Ukraine and supply chain disruption.
As we highlighted at Our Economy 2023 productivity is one of the most important determinants of broader living standards in the region. As the UK seeks to renew its productivity growth the innovative sectors in the North East need to be a key part of that resurgence.
Looking forward, global economic trends will continue to affect the North East economy over the next decade too. A continued focus on these key indicators, coupled with coordinated action across and beyond the region, can see the North East navigate future challenges too and build a better regional economy for all.
By the Jan 23-Dec 23 period:
The furlough scheme and the recruitment of additional health workers delayed decreases in employment until after the Jan-Dec 2020 period. Compared to 2020:
Occupations described as "better jobs" are managers, directors and senior officials; professionals (such as civil engineers and doctors); and associate professionals and technical workers (such as laboratory technicians and graphic designers).
The measure used for these targets is workplace employment and the totals, therefore, exclude North East residents who commute to other areas to work or who work offshore or overseas. The totals include in-commuters who work in the North East.
We use the SOC 2010 occupational classification as it provides a more consistent time series than the more recent SOC 2020.
By the Jan 23-Dec 23 period:
The furlough scheme and the recruitment of additional health workers delayed decreases in employment until after the Jan-Dec 2020 period. Compared to 2020:
The employment rate in this target is the number of residents aged 16 to 64 who are in employment expressed as a percentage of the total resident population in this age group. The 16 to 64 age group is used in official statistics as a proxy for the working age population.
People in employment include full-time and part-time employees and self-employed workers.
For calculations of progress, the gap is defined as a percentage of the England excluding London rate.
By the Jan 23-Dec 23 period:
The furlough scheme and the recruitment of additional health workers delayed decreases in economic activity until after the Jan-Dec 2020 period. Compared to 2020:
The economic activity rate in this target is the number of residents aged 16 to 64 who are economically active expressed as a percentage of the total resident population in this age group. The 16 to 64 age group is used in official statistics as a proxy for the working age population.
Economically active people are those who are either in employment or unemployed and actively seeking work.
For calculations of progress, the gap is defined as a percentage of the England excluding London rate.
Between 2015 and 2022:
Between 2019 and 2021:
The private sector employment density is the number of people employed in VAT or PAYE registered private sector enterprises expressed as a percentage of the resident population aged 16 to 64.
The employment data source (the Business Register Employment Survey or BRES) is annual and is based on information from businesses rather than from individuals. The other four employment targets use data from household surveys. Employment in non-registered enterprises is excluded. BRES only has consistent data from 2015 onwards.
For calculations of progress, the gap is defined as a percentage of the England excluding London density.
Between 2014 and 2021:
The latest available data covers the first two years of COVID-19 impacting on the economy. Between 2019 and 2021:
GVA (Gross Value Added) measures the contribution to the economy of each individual producer, industry or region in the UK. GVA per hour worked is the official recommended productivity measure as it takes account of local differences in average working patterns.
For calculations of progress, the gap is defined as a percentage of the England excluding London rate.