11:44AM, Wed Jun 20, 2012

Mixed News On Jobs Front For Tyne And Wear

By Adrian Hogg Location: Newcastle

There has been mixed news on the jobs front in the North East, with both employment levels and the number out of work growing.

Nationally, unemployment in the UK fell again, dropping by 51,000 to 2.61 million in the three mopnths to April.

However, figures show the pattern in the region was more varied. Employment in the North East now stands at 1,143,000 or 66.5%, a rise of 3,000 over the quarter and 10,000 over the year. Nationally, the rate is 70.6%.

However, the number out of work has also risen, to 145,000 or 11.3%, a rise of 8,000 over the quarter and 27,000 over the year. The figure for the UK is 8.2%.

Ross Smith, policy director of the North East Chamber of Commerce, said the high number of public sector workers in the region could account for the rise in the jobless total.

"Employment in the North East continues to grow, which is a good indicator of economic health," he said. "However, unemployment has also risen in the region while it has gone into reverse elsewhere in the country.

"Nationally, statistics show a steady fall in public sector employment and an increase in private sector employment - with a marginally positive net effect. Given the larger role the public sector has historically had in the North East, our significant private sector job gains may still not be enough to offset large-scale public sector losses, despite a series of recent good news announcements.

"The North East still has plenty to be optimistic about with our unparalleled export performance and healthy manufacturing and engineering sector."