Unemployment Rate Increases in the North East Over Three Years

Written by on 25th January 2026

The unemployment rate in the North East of England has risen rapidly in the last three years according to the Office for National Statistics (ONS).

Recent ONS statistics show that in October, 2025 the unemployment rate reached 6.2% which is 0.9% more than October, 2024 when it was only 5.3%.

The jobless rate in 2024 is also an increase from the previous year when it was only 4.3%. Josh Maratty, policy adviser at North East Chamber of Commerce said one of the factors which lead to this is “the UK’s persistently high level of economic inactivity. Almost one million young people are now not in education, employment or training (NEET). That represents a huge loss of potential, both for the economy and for the individuals affected.”

He added that “many barriers exist to work that go far beyond job availability: long-term health conditions, caring responsibilities, limited transport, inflexible working patterns or a loss of confidence after time away from work. Many employers want to widen access to work and build more flexible and inclusive roles, but the system of support around skills, health and employment is often fragmented and hard to navigate.

He believes tackling economic depravity is “not only a social challenge, but a productivity and growth challenge too.”

People in the North East between age 16 and 24 are on average the most affected by this increase as their unemployment rate is 22.5%, which significantly exceeds the 15.3% UK average dismissal rate. This is also a major increase from previous years as the rate for this age group was only 11.4% in October, 2023.

This unemployment rate seems to also have a gender divided as although 7.4% of men in the North East are currently looking for work, women’s unemployment is at a all-time-high as 60% of any private sector jobs are going to men.

This has impacted work industries such as manufacturing, construction and hospitality the most as well according to ONS following a decrease in the single-year employment rate.

For more information visit ons.gov.uk.


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