Callum George, policy adviser at the North East Chamber of Commerce, said the latest ONS employment figures suggest an alarming increase in unemployment, which is cause for concern.

Official statistics under review published by the ONS suggest between March and May 2024, the unemployment rate in the UK for ages 16+ was 4.4%. In the North East this was higher at 4.8%.

The UK’s employment rate for ages 16-64 was 74.4%. In the North East this was lower, at 69%.

The UK’s economic inactivity rate for ages 16-64 was 22.1%. In the North East this was higher, at 27.5%.

Callum said: "Once again, these figures suggest that inequality between the North East and the rest of the country is growing when it comes to employment, as we remain the region with the lowest employment rate, and highest levels of economic inactivity in England.

"Between March and May this year, the unemployment rate in the North East for those aged 16+ was higher than the national average, by 0.4%. The economic inactivity rate for people aged 16-64 in the North East remained higher than the national average, by 5.4%. The region’s employment rate for those aged 16-64 was lower than the national average, by 5.4%.

"It is worth stating that this year the ONS have warned against being too reactive to these figures, as they undergo new ways of measuring employment, and so it’s more important than ever to take a forward-looking approach of what can be done to improve our region’s labour market, rather than focus on what the official figures suggest.

"Before the general election, the Chamber set out five priorities for whichever party was successful in forming a government. One of our main asks was to take the view that the more people we support into work, the more of a chance we have of addressing other issues such as child poverty. This will be absolutely crucial if the government wants to achieve growth in all corners of the country.

"We have already seen that the new government is placing a great precedent on giving local leaders more power to deal with issues like this, which is an important first step. However, this is an issue that will also require national recognition and leadership. Incentivising SMEs to provide occupational healthcare packages to employees, as well as pushing forward with plans for more free childcare places would be greatly welcomed.

"Additionally, the problem is not just about getting people into work but making sure that they have the right skills and knowledge that employers are looking for. Over the past two years, we have produced two Local Skills Improvement Plans with the Department for Education, which we would urge the new government to consider when delivering new policies on education, employment and skills.

"We have already written to Prime Minister Starmer and his secretaries of state congratulating them on their newly formed government. As ever, our door is open to working alongside them and local leaders to forge a stronger, fairer North East."