A ROLLERCOASTER week is one that starts with news that entrepreneurialism is a major driver of the regional economy, followed 24 hours later by reports that unemployment has reached a 17-year high and ends with the announcement that the UK is clawing its way back into export markets.
Among the rapid-fire issue of surveys, studies and press releases, news arrived that people in the region enjoyed a rise in disposable income between 2004 and 2009 (did you notice?), the Government is pressing ahead with plans to raise the retirement age for women by an initial 18 months and NECC’s Business Barometer demonstrated that the region remains at the forefront of UK exports.
According to the ONS unemployment figures there has been a drop of 22,000 employed within the public sector over the last 18 months and further 10,000 decline in the number or people working in education.
If correct, and there is a considerable margin for error, how can the private sector accommodate all these people unfortunately made jobless through no fault of their own without radical tax incentives for employment and training, a reduction in legal and administrative burdens and a general slicing through the red tape hampering business growth?
The figures also show a considerable rise in manufacturing unemployment. This is not reflected in our export figures, which are a key indicator of manufacturing strength. The North East had a record year last year, exporting over £12bn in goods.
Overall the region’s 12-month figure is still at a record high, which is excellent news. A small dip in the latest statistics in September followed our two best ever quarterly performances at £3.112bn, which represented our third highest quarterly export total.
While incredibly disappointing, the unemployment statistics did not come as a huge surprise given the background context of the global economic crisis, public sector austerity measures and the slowdown in economic growth seriously affecting the jobs market, particularly in the North East.
But we have cause for optimism. Lear Corporation is creating 300-400 jobs in Houghton, SSI recruitment at the former Teesside Cast Products site is under way with the workforce now up to 800, Tata Steel has invested £2m in wind turbine manufacturing at Hartlepool and Nissan currently employs more people than it ever has during its time on Wearside, having taken on over 1,200 extra employees during the last two years.
Many of these jobs are highly skilled sustainable roles in a diverse range of industries and do not rely on one large single investor.
So a regional rollercoaster we may be, but off the rails we are not!
:: James Ramsbotham is chief executive of the North East Chamber of Commerce
