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  • NOMIS' Labour Market Profile shows that the current employment rate in Gateshead stands at 73.1% of the working age population, recovering from a mid-recession low of 65% in 2010. The gap to England has now closed, with the England average at 74.1%. [1] The Public Health Outcomes Framework tool provides a useful graphical display of the data, although it is updated less frequently [Chart - Employment rate]
  • The largest employment sectors in Gateshead are Retail, Business Administration & Support Services, and Health - each sector having a 12.5% share of the total. The next largest sector is Manufacturing at 11.4%. [2] There has been a large reduction in the number of employees in the Manufacturing sector over the years, with this sector having accounted for 31.6% of jobs back in 1981. [3] However, Gateshead's Manufacturing sector is still propotionally larger than the national average of 7.9%.
  • The ratio of full to part time employees in Gateshead is estimated to be 2:1. [2]
  • Around 30% of clients with an interest in working for themselves set up as self-employed following support from the Council. [4] Although there can be significant volatility in self employment statistics locally, the general trend has been upward since the millennium. In 2000 there were approximately 5,000 people self employed. This now stands at 9,800 in September 2016 and compares with an England average of 10.7%. [1]
  • In 2014, just under 1 in 10 people employed in the UK wanted to work more hours than they currently do and are therefore classified as underemployed. This is predominantly people who work part time. On average each underemployed worker would like to work an extra 11.3 hours per week. The top three roles with the highest percentage of underemployed workers are bar and restaurant/kitchen staff (28%), cleaners (23%), and sales assistants/supermarket cashiers (23%). The North East has the highest percentage of underemployed workers in the UK (11.5%) and has seen the greatest increase over recent years. [5]
  • A recent national study revealed that zero hours contracts are becoming more widespread, with about one million people employed in this way, with staff earning on average £9 an hour compared with £15 an hour from other employers. [6]
  • The number (and rate) of working age people claiming out of work benefits has been steadily decreasing but still stands at 14,790 (11.6%). This rate is higher than the England average of 8.4% [7].Out of Work Benefits Claimants
  • For around 31% of working age Gateshead residents who are economically inactive, this is due to long term sickness. [1] This is higher than the North East (28%) and England (22%) rates. Because the data represents only a sample of the total population, it is not possible to state with certainty the direction of travel, or trend. However, the data suggests that the proportion of people who were economically inactive due to long term sickness was decreasing up until the 2008 recession. Since then it has been consistently around or above 30%.
  • The number of people claiming Job Seekers Allowance or Universal Credit due to unemployment was 3,800 (3.0%) in April 2017. This is higher than the national average of 1.9%. 23% of claimants are younger than 25 years of age. [8]
  • In 2015 there were 330 young people aged 16-18 in Gateshead who were not in employment, education or training (NEET). This equates to 5.2% of that age group and is higher than the England average of 4.2% [Chart - Not in employment, education or training]. [9]
  • Over the last five years, median gross weekly pay of full time workers in Gateshead has been consistently lower than England levels. In 2016, the gap in pay to England was £53 lower. [10]
  • Average income in Gateshead for 2012 was £30,781, more than £9,000 less than the national average of £39,956. [11] Research by the Institute of Fiscal Studies has shown the average household income in the UK fell in 2010-11 by over 3%, the largest one year fall since 1981. New IFS projections suggest median (middle) household income in 2014–15 has recovered to around the same level as it was in 2007–08 before the recession, though still more than 2% below its 2009–10 peak. But the recovery in living standards that began in 2011–12 has been much slower than after the three previous recessions. [12]
  • Almost half of recent graduates in the UK are in jobs for which a higher educational background is not usually required, up from 39% before the financial crisis in 2008. [13]
  • In 2015 there were 5,530 active businesses in the borough. [14] The overall Birth figures of 710 is back to pre-recession levels. There were 585 business Deaths, compared with the the recession high of 605 in 2010. This illustrates some increasing robustness in the local economy, following previous stagnated growth in Gateshead. Gateshead has a 91% one year survival rate for newly born businesses, compared with a UK average of 92%. The five year survival rate in Gateshead is 35%, compared with a UK average of 41%. This suggests that existing businesses in Gateshead still require additional help in the longer term to become sustainable.

     

    See also 'NewcastleGateshead Economic Scorecard', 'Gateshead Local Economic Assessment', and 'Gateshead Rural Economic Strategy'

    [1] Annual Population Survey, ONS, Oct 15 - Sep 16 (NOMIS website)

    [2] Business Register and Employment Survey, ONS 2016 (NOMIS website)

    [3] ONS Census, 1981 (NOMIS website)

    [4] Gateshead Council, Economic and Housing Growth Service, 2015

    [5] Underemployment and overemployment in the UK, ONS, 2014 (ONS website)

    [6] Zero Hours Contracts Myth and Reality Research Report, Chartered Institute of Personnel and Development, Nov 2013

    [7] Annual Population Survey, ONS, Nov 2005 - May 2016

    [8] Jobseekers Allowance and Univeral Credit Claimants (Claimant Count), DWP, April 2017 (NOMIS website)

    [9] 16-18 NEET, DfE, 2015 (PHOF website)

    [10] Median Gross Weekly Pay of Full Time Workers, Annual Survey of Hours and Earnings, ONS, 2016 (NOMIS website)

    [11] Average Income, Acxiom, 2012

    [12] Monitoring Poverty and Social Exclusion 2012 Report - Joseph Rowntree Foundation, Households Below Average Income, DWP 2012/13 (GOV.uk website)

    [13] Labour Force Survey - Graduates in the Labour Market, ONS, 2013

    [14] Business Demography, ONS, 2015