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    North East

    Demography
    As most of its traditional industries withered away, the population and workforce of the North East shrank until the turn of the century. The revival since 2000 is attributable mainly to outsourcing, attracted by lower costs and the renovation of Newcastle. (Read more...)
    Household income and spending
    Income indicators reflect the relatively low value-added of services activities in the North East. (Read more...)
    Housing market

    All the indicators agree that the weak recovery in the housing market in the North East petered out in the second half of 2010 and the decline continued in 2011.

    Construction output, however, was sustained by civil engineering contracts and the value of construction projects started in the North East declined only slightly in the twelve months to April 2011, a better performance than in any other part of the UK.

    For at least twenty years house-price inflation and house prices in the North East have been lower than in any other part of the UK.

    (Read more...)
    Industries and firms
    The present industrial structure of the North East and its evolution. (Read more...)
    Labour market

    In 2010 manufacturing employment in the North East largely recovered from the losses it had suffered during the recession and services employment remained robust until its conditions and prospects deteriorated in the final months of the year.

    As a result the main indicators were registering a gradual improvement until 2010Q3.

    (Read more...)
    News and interpretation - Manufacturing
    For manufacturing industries in the North East the most encouraging recent developments are the saving of the former Corus steel plant at Redcar, the continuing increase in production of Nissan cars made in Sunderland, the preparations for production of all-electric vehicles by Nissan, the award to Hitachi of the contract to make new rolling stock for Inter-City express trains and the award of several contracts for machinery for offshore wind farms. (Read more...)
    News and interpretation - Services

    In the closing months of 2010 the first large-scale job losses were announced in the North East as a result of spending cuts in the budgets of UK government departments.

    In the private sector, job gains in services appear still to outweigh job losses in the North East.

    (Read more...)
    Occupational mix
    Some of the more striking contrasts between the occupational profile of the North East and that of the UK as a whole illuminate several weaknesses of the region's economy, but also show ways in which it has partially been cushioned against the recession. (Read more...)
    Short-term outlook

    On the basis of strong recent performance and increasing demand for exports and the particular specialisms of companies in the North East, manufacturing in the region has good prospects for output growth over the next few years, but conditions are not yet secure enough for employment to increase.

    Private-sector services and outsourcing are still doing well and are expected to continue to increase output. The employment growth likely from these services will, however, only partly counterbalance the heavy job losses already being announced as a result of cuts in spending by central government and local authorities.

    (Read more...)
    Skills and earnings
    The industries that have been successful in the North East since 2000 have lowered the unemployment rate and slightly raised the participation rate, absolutely and relative to the UK average; but they have not closed the gaps in earnings levels between this region and the UK. (Read more...)
    The long-term: Demography
    The two city regions of the North East are the source of its strengths and weaknesses in the recent past and into the long-term future. (Read more...)
    The long-term: GVA and employment

    The industries and activities in which the North East has a firm base and comparative advantages are faring well at present and have good prospects into the medium and long terms.

    Outsourced activities and call-centre work were the main support of a considerable part of the services sector in the North East during the recession and are still crucial after the recession.  Recent investments from the private sector should sustain these activities for several years, but the region is particularly exposed to the long-term effects of  cuts in public spending.

    (Read more...)
    Transport infrastructure
    The transport infrastructure of the North East is generally of good quality, but there are some exceptions. Transport services, particularly between rural areas and the two main urban areas of the region, are poor. Since the two urban areas are the main current and future locations of employment, this defect is a hindrance to bringing more people into the labour market. There is also a great need to improve services between city regions, the north-south links to London and Edinburgh, and the road and rail links to Teesport. (Read more...)