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Region’s unemployment soars to a four-year high

The Journal

|

January 21, 2026

UNEMPLOYMENT has risen sharply in the North East to reach its highest level in more than four years, new figures show.

- GRAEME WHITFIELD

Region’s unemployment soars to a four-year high

Secretary of State for Work and Pensions Pat McFadden

The figures from the Office for National Statistics show that the joblessness rate in the North East rose sharply to stand at 6.2%, the highest level seen in the region since early 2021.

Economic inactivity also rose in the North East and is the highest in the country at 26%.

The rise in unemployment comes as national rates stayed steady at 5.1%. Only London now has higher rates of unemployment than the North East.

Josh Maratty, policy adviser at the North East Chamber of Commerce, said that the new figures showed “how fragile progress in the labour market can be, and the importance of sustained action to support participation and job creation.

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