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Economic inactivity rate

Proportion of working age population that are not active in labour market

Labour Market Standards of Living Newcastle North Tyneside South Tyneside Durham Gateshead Sunderland Northumberland
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Latest North East data

26.0%

North East economic inactivity rate

Oct 22-Sep 23
working age (16-64)

a higher rate than nationally

England excl. London: 21.0%

+1.3 pp

increase in latest year

pp = percentage points
England excl. London
-0.5 pp

28.9%

South Tyneside (highest rate)

lowest (North Tyneside)
22.5%

Key facts about the data:

  • The latest North East economic inactivity rate was at its highest level since 2012/13
  • the England excluding London rate was lower than the North East's and the gap was the largest since comparable data started in 2004/05
  • the North East rate was the highest among the eight core city areas
  • all seven North East local authority areas had higher economic inactivity rates than England excluding London
  • South Tyneside had the highest rate, North Tyneside had the lowest
  • at constituency level, the highest North East rate was in Wansbeck, with the the lowest rate in Newcastle upon Tyne North.

Economic inactivity by sex and age

28.4%

North East female economic inactivity rate

Oct 22-Sep 23
England excl. London: 25.0%

+0.7 pp

increase in latest year

North East female rate

23.4%

North East male economic inactivity rate

Oct 22-Sep 23
England excl. London: 16.9%

+1.9 pp

increase in latest year

North East male rate

Key facts about the data:

  • The latest North East male economic inactivity rate was at its highest level since comparable data started in 2004/05
  • the latest female rate was at its highest level since 2017/18
  • the female rate continues to be higher but the latest gap was the lowest since the time series started
  • the male and female North East rates were both highest among 16 to 24 year-olds, followed, in both cases, by the 50 to 64 age group
  • both rates were lowest among those aged 35 to 49
  • the largest net increase in North East working age inactivity in the latest year was among males aged 25 to 34
  • inactivity in the North East also increased by more than 2,500 over the year among both males and females aged 50 to 64 and among females aged 16 to 24.

Reasons for economic inactivity

8.9%

economic inactivity: sickness

% of North East 16-64 population
Oct 22-Sep 23
England excl. London: 6.2%

5.4%

economic inactivity: study

% of North East 16-64 population
Oct 22-Sep 23
England excl. London: 5.4%

4.9%

economic inactivity: looking after family/home

% of North East 16-64 population
Oct 22-Sep 23
England excl. London: 4.0%

3.9%

economic inactivity: retirement

% of North East 16-64 population
Oct 22-Sep 23
England excl. London: 2.9%

Key facts about the latest data:

  • Over 34% of working age inactivity in the North East was due to long-term or temporary sickness, compared to just under 30% in England excluding London
  • because the overall inactivity rate was higher, the percentages of working age people that were inactive for each of the four main reasons was also higher in the North East than in England excluding London
  • among North East local authority areas:
    • about 13% of the South Tyneside working age population were economically inactive due to sickness
    • Newcastle had the highest percentage of working age people that were inactive due to study
    • Northumberland had the highest percentage where the reason was looking after family or home and North Tyneside had the highest percentage where it was early retirement
  • the number and percentage of North East working age people inactive due to sickness were both at their highest since 2005/06
  • working age inactivity in the North East due to study was at its second lowest level since 2008/09
  • North East males were more likely than females to be inactive and cite sickness as a reason
  • North East females were more likely to be inactive and cite each of the other three reasons
  • at a North East regional level (including Tees Valley) the largest increases in the number of inactive people in the latest year were among:
    • males aged 16 to 24 and 25 to 49 due to sickness
    • males aged 50 to 64 due to looking after family or home
    • females aged 16 to 24 and 25 to 49 due to study.  

What is economic inactivity?

Economic inactivity measures the number of people who are not in work or actively seeking employment.

Individuals can be economically inactive for a range of reasons including that they are in education, have health issues or disabilities that prevent them from work, have caring responsibilities or have retired. When surveyed, respondents are asked for the main reason that they are not working and some cite a reason outside of ill-health, study, caring responsibilities or retirement.

The headline rate is the percentage of 16 to 64 year old people who are economically inactive, with that age group used as a proxy for the working age group.