southtyneside.info
Jobs and Enterprise
Version 6, July 2008..
Employment rate in the borough
What affects the employment rate?
The Employment Rate is the number of employees divided by the working age population with the result expressed as a percentage. This information comes from the Annual Population Survey.
| Estimated number of employees in South Tyneside | 63,900 |
| Total number of residents of working age in South Tyneside | 91,900 |
| So, (63,900 / 91,900) x 100 gives an employment rate | 69.6%. |
The latest information for year ending December 2007 shows that South Tyneside’s employment rate was 69.6%, the North East’s was 71.6% and Great Britain’s was 74.4%.
Between September 2007 and December 2007, the number of people employed in South Tyneside rose by 2,100. The employment rate is a 'rolling' average of the previous four quarters. South Tyneside faced two particularly 'bad' quarters in 2006: these have now 'fallen off' and been replaced by two better quarters, giving a more accurate reflection of the employment situation.
The effect is biggest improvement in employment rate in Tyne & Wear, with South Tyneside’s employment rate improving by 2.4%, from 67.2% in September 2007 to 69.6% now. The rest of Tyne & Wear saw modest improvements, with the exception of Newcastle, which saw a fall of 2.1% (68.8% to 66.7%, with 3,300 fewer Newcastle residents in employment).
Over the most recent quarter, both Great Britain and North East rates improved by just 0.1%. The improvement in South Tyneside means that we've narrowed the gap with Great Britain by 2.3 percentage points. We have reduced the gap from 7.1 percentage points in September 2007 to 4.8 percentage points in December 2007.
Over the period March 1999 – December 2007, the employment rate for Great Britain improved by 0.6%, the North East by 5.0% and South Tyneside by 5.5%.
Between 1999 and 2007 there was a 7,900 person increase in the number of South Tyneside residents in employment (12.4%). This is above the Tyne & Wear and North East averages: in Tyne & Wear there was a 11% increase in employees; regionally there was a 9.9% increase.
| Area | March 1999 Employees | December 2007 Employees | Employee Change 1999-2007 | % Employee Change 1999-2007 |
|---|---|---|---|---|
| Great Britain | 25,417,000 | 27,140,200 | 1,723,200 | 6.3% |
| North East | 1,017,000 | 1,128,800 | 111,800 | 9.9% |
| Gateshead | 81,000 | 84,300 | 3,300 | 3.9% |
| Newcastle-upon-Tyne | 101,000 | 116,700 | 15,700 | 13.5% |
| North Tyneside | 82,000 | 90,700 | 8,700 | 9.6% |
| South Tyneside | 56,000 | 63,900 | 7,900 | 12.4% |
| Sunderland | 107,000 | 124,100 | 17,100 | 13.8% |
| Tyne & Wear | 427,000 | 479,700 | 52,700 | 11.0% |
| Source: taken from NOMIS | ||||
Note: The annual population survey looks at residents in work who may work in South Tyneside but many will work outside the Borough.
The future employment rate for South Tyneside will be driven by:
- The size of the working age population in South Tyneside which is divided by
- The number of people from the working age population in South Tyneside in employment to give the "Employment Rate".
Both of these are subject to change.
Working Age Population
The size of the working age population in South Tyneside has also grown by 4,900 people. In 1999 the working age population was estimated as being 87,000: by September 2007, it was 91,900.
While South Tyneside has narrowed the employment rate gap significantly, especially in the past two years, our "true" improvement has been masked by an increase in the workforce numbers. This has had the effect of depressing our employment rate by about 3.8%.
| Area | |
|---|---|
| North East | +51,200 |
| Gateshead | -3,300 |
| Newcastle | +11,900 |
| North Tyneside | +4,700 |
| South Tyneside | +4,900 |
| Sunderland | +5,300 |
Source: Annual LFS/APS |
|
If our working age population had remained static at the March 1999 – February 2000 level of 87,000 people, our employment rate in December 2007 would have been 73.4%.
To see any marked improvement we have a double task get people into work, and mitigating the effects of any increase in the working age population.
Links to the Local Area Agreement & Performing Together
Priority Outcome: Reducing the gaps in employment and benefit claimant rates between the worst performing neighbourhoods and national average.
This is important as our economic activity rate is 30% higher than the North East and the rest of England. We want to narrow these gaps, helping people to reach their potential.
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