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Our Economy 2022 : 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. 

HomeSpotlight AnalysisOur Economy 2022Our economy 2022: Indicator tables

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 growth 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 that, together, are designed to deliver improvements in the North East economy. These consist 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.

By the end of June 2022, the North East was about 54% of the way to the "more jobs" target of increased employment of 100,000 between 2014 and 2024. The "better jobs" target that increased employment would be driven by more jobs in managerial, professional and associate professional occupations is well on the way to being met. The increase in employment in these roles of 77,000 since 2014 is higher than 70% of additional total employment of 100,000.

There had been some progress to closing the gap in the employment rate between the North East and England excluding London up to June 2022. However, the economic activity rate gap had widened rather than closing, as recent increased working age inactivity impacted on the North East more than nationally.

From latest data relating to the other two targets, the gaps had widened rather than narrowing. In the North East, private sector employment density and GVA per hour had both increased since 2014 but not by as much as in England excluding London.

 

More Jobs

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

Progress:
By Jul 2021-Jun 2022, employment in all occupations in the North East LEP area had increased by 53,700

Impact of Covid-19:
Prior to the pandemic, employment had reached a total that was 69,000 higher than in 2014. Since that period employment has decreased by 15,300.

More information:
More Jobs Target on the Evidence Hub 

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 2021-Jun 2022, North East employment in these occupation groups in the  had increased by 77,000, equivalent to 143% of the net growth in employment in all occupations

Impact of Covid-19:
In the initial period after the pandemic's onset, there was increased North East employment in these occupations, which include medical roles. By Jan-Dec 2020, employment was 84,600 higher than in 2014 but the total has decreased by 7,600 since.

More information:
Better Jobs Target on the Evidence Hub 

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 2021-Jun 2022, the gap between the North East LEP area and England excluding London had decreased by 17% when compared with the Apr 13-Mar 14 period.

Impact of Covid-19:
In the most recent year, the North East employment rate increased by 0.6 percentage points compared to a 0.7 percentage point increase in England excluding London. This has slightly widened the gap after it had closed in the earlier part of the period since 2014.

More information:
Employment Rate Target on the Evidence Hub 

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 2021-Jun 2022, the gap between the North East and England excluding London rates had widened by 3% when compared with the Apr 13-Mar 14 period.

Impact of Covid-19:
In the most recent year the North East economic activity rate decreased by 0.9 percentage points, compared to a 0.2 percentage point fall in England excluding London. This has widened the gap.

More information:
Economic Activity Rate Target on the Evidence Hub 

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 widened according to this measure.

Impact of Covid-19:
In 2020 the gap between the private sector employment densities of the North East and England excluding London was the largest it had been since 2015. However, it narrowed slightly in 2021.

More information:
Private Sector Employment Density Target on the Evidence Hub 

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 2020, the gap between the North East LEP area and England excluding London had widened slightly (by 9%). In both areas productivity had increased, with the largest percentage change in the latest year when GVA fell less sharply than hours worked.

Impact of Covid-19:
In 2020, hours tended to decrease more in sectors with lower GVA (e.g. hospitality and retail). This resulted in increased GVA per hour both nationally and locally, despite a fall in GVA.

More information:
GVA per hour Target on the Evidence Hub 

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 2021 Our Economy publication.

In particular, population totals that are quoted or used to calculate rates are mid-2020 estimates. Although 2021 Census totals have been released, mid year estimates prior to that date have not been retrospectively revised to take account of new information from the Census, so we have decided to use a consistent time series. 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. 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 risen slightly;
  • the unemployment rate has fallen. 

The North East's trends in productivity and unemployment in this period have been better than the national equivalents but this has not been true for the economic activity 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 has not changed, while the death rate has increased;
  • The business survival rate has fallen, as has the proportion of high growth businesses;
  • The percentage of scaling start ups has not changed but the percentage of scaling survivors has increased;
  • The values of goods and services exports per adult have both increased.

The North East's trends in businesses per head, business birth rates and percentage of scaling survivors 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;
  • Rates of business expenditure on R&D and employment in R&D per head have both increased;
  • Higher education expenditure per head on R&D has fallen but Government expenditure has increased;
  • In total, R&D expenditure as a percentage of GVA has risen;
  • The percentages of people employed as professionals and associate professionals in science, research, engineering and technology have both increased;
  • The rate of patents granted per head has also increased.

The North East's trends in businesses involved in wider innovation, business R&D expenditure and employment, total R&D spend as a percentage of GVA, employment as STEM associate professionals and patent rates have all been better than the national equivalents. This has not been true for 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 and economic activity rates have both increased;
  • 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 activity rate and 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 the proportion of employers with skills gaps, the working age and older workers unemployment rates, and full-time employee pay have 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 in public spending on transport, metro (light rail) passenger journeys and miles and bus vehicle miles have all been better than the national equivalents. This has not been true for the other two 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 decreased and its rateable value per sq.m has barely changed;
  • The rate of major development planning application approvals has decreased;
  • 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.

Despite not increasing significantly, the North East's business floorspace trends have both been better than the national equivalents. This has not been true for trends in additional dwellings or major development approval rates. 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)
  • Local Growth Dashboard (ERC)
  • 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

Contact us

To find out more about the data used to generate this evidence base, please get in touch with the Strategic Economic Planning team. 

Email the team