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National
Jonathan Walker

Fall in North East job adverts highlights danger for region's economy

The number of jobs being advertised in the North East has fallen dramatically.

It's a sign of the damage coronavirus and the lockdown has inflicted on the region's economy - and suggests that people affected by the wave of redunancies announced by employers may struggle to find replacement work.

Job adverts are one of the factors examined by the Office for National Statistics in a new report about the state of the economy.

It found the number of online adverts for jobs in the North East was just 65% the figure for 2019, before the pandemic hit.

The same report found that of businesses paused or currently trading, 10% said that their risk of insolvency was "moderate" and 1% said it was "severe".

It's the latest indication that working people in the region face hardship in the months to come.

Last week, Jonathan Walker, assistant director of policy at North East England Chamber of Commerce, said: "There is a very real danger that this recession will hit our region particularly hard and further entrench the disparities between here and other parts of the country.

"We need an immediate plan from Government, working with local organisations and the business community to build a recovery that is based on fairness both within and between regions."

Chancellor Rishi Sunak's job retention scheme, known as the furlough scheme, continues until the end of October. Employers are now expected to make a financial contribution, but the Treasury is still subsidising jobs.

In the North East, 282,500 workers were put on furlough and some of them may never go back to their old jobs.

The Bank of England predicted earlier this month that unemployment nationally would reach 7.5%, almost twice the current level. If unemployment rises at the same rate across the country, this would mean an additional 62,500 people in the North East region out of work, bringing the total in the region to 130,500.

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