Employment and work

A low employment rate and a high rate of economic inactivity has been a persistent challenge for the North East LEP area in recent years. Economic inactivity in particular has significantly increased since the onset of the Covid-19 pandemic. The latest North East rate was 1.9 percentage points higher than a year earlier, the second largest percentage point increase among the core city LEP areas and a larger increase than for England excluding London (up 0.4 percentage points).

Large numbers of workers in the North East region are also employed on zero hours contracts, 3.9% of those in employment in April-June 2022. Despite season variation this has remained a relatively constant proportion of the North East’s workforce since 2014. While zero hours contracts can provide some workers with the flexibility to work around other commitments, the relative lack of income security for those on zero hours contracts is often highlighted as detrimental to individual wellbeing^[1]. 

Employment by inclusion characteristics 

Not only does the North East LEP area have a relatively low employment rate compared to England excluding London, but there is also considerable variation across different inclusion characteristics compared to the national average. 

Female working age residents are less likely to be in employment than male working age residents in the North East LEP area, although it is male residents that have the bigger employment gap compared to England excluding London. North East LEP residents who belong to an ethnic minority also have lower employment rates than the national average.

In terms of employment by age generally workers between the ages of 25-50 are the most likely to be employed in the North East LEP area. It is amongst workers at the start and end of their working lives that the North East LEP area shows the largest employment gaps compared to England excluding London.

The North East LEP area also has an above average number of residents who are EA or working limiting disabled and these residents are less likely to be employment than those who live in England excluding London. This finding is relatively consistent across genders.
 

Income deprivation and poverty

Gross disposable household income is relatively low in the North East LEP area. The latest data from 2019 suggests that GDHI per head in the North East LEP area was only £17,196 compared to £20,411 in England excluding London.

This lower level of average household income is reflected in the rates of poverty in the North East region. The proportion of households below average income after housing costs in the North East region is 25%, the third highest rate behind only the West Midlands and London on 25% and 27% respectively. The North East LEP also has a high proportion of children living in low income families, and this proportion has been increasing more quickly than in England excluding London in recent years. The Joseph Rowntree Foundation has highlighted that this poverty is largely caused by low rates of employment and pay in the North East^[1]. 

Other measures of deprivation also indicate that poverty is relatively high in the North East. The Trussell Trust for instance reports that 100,000 food parcels were distributed through their food bank network in 2021-2022 across the North East region^[2]. This was 13% more than in 2014-2015. While the rate of growth since 2014-2015 has been slower than the national average, the North East already had higher numbers of parcels distributed per head compared to England excluding London. The number of parcels distributed per 10,000 residents is still higher in the North East.

In addition, the number of residents in fuel poverty in the North East LEP is slightly above the national average according to the latest data from 2020. This means that they live in a household with a fuel poverty efficiency rating of band D or below and that after spending the required amount to heat their home they are below the official poverty line. Within the North East LEP fuel poverty is highest in Newcastle. This data has not yet been updated to reflect the recent increases in energy prices.

Access and living deprivation

Generally, access to employment centres within the North East LEP area compares favourably with the rest of England, especially in the more urban areas of the North East LEP. All local authorities in the North East LEP area have access to more major employment centres with 30 minutes via public transport than the national average.

The North East LEP also performs well on measures of lived environment and access to green spaces. Only three enterprise areas have a lower proportion of LSOAs in the bottom 10% for lived environment than the North East LEP. In addition, every local authority in the North East LEP area apart from Newcastle has an above average proportion of properties with access to a private garden, while the Tyneside local authorities also all have an above average number of parks or public gardens within a 1000m radius.

Despite this strong level of access rates of active travel in the North East LEP area are low. Less than 50% of those living in all the North East LEP’s local authorities walk for any reason at least three times per week, while Newcastle is the only local authority with more than 5% of residents who cycle at least three time per week.

Health and wellbeing 

The low levels of employment and disposable income in the North East LEP area is reflected in the statistics on health and wellbeing in the North East. The North East region has a high premature mortality rate amongst under 75s compared to the rest of England, an issue which has remained relatively constant over recent years. Life expectancy at birth is lower than the English average in every North East LEP local authority except Northumberland for both males and females.

The North East also has a high prevelance of certain health risk factors. Almost 70% of adults in the North East region are classed as either overweight or obese, significantly more than in England overall.

All but one North East LEP local authority area has a higher percentage of people reporting low levels of life satisfaction (Northumberland being the only exception). In all seven areas however, most people report high or very high life satisfaction.