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Regional Profile of North East - Economy, June 2013

Released: 19 June 2013 Download PDF

Also in this release

Change in business birth rates and death rates, 2010 to 2011


Business birth rate increased most in North East and London between 2010 and 2011
Source: Office for National Statistics


  1. Birth and Death rates are expressed as a percentage of active enterprises

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The North East had one of the highest increases in the rate of business creation between 2010 and 2011. It exported more goods outside the European Union (EU) than to the EU in 2011.

The business birth rate increased by 1.8 percentage points between 2010 and 2011 from 9.4% of active enterprise to 11.2%, the joint highest increase with London. The business death rate decreased by 1.1 percentage points from 11.0% to 9.9% over the same period.

In 2011, the value of goods exported relative to the size of the local economy was greatest in the North East at 33% of gross value added (GVA), compared with the UK average of 22%. More than half the region’s goods exports were to outside the EU (51%).

The North East had the highest unemployment rate of all the English regions in Q4 2012 at 9.7%. It had increased by 4.0 percentage points from 5.7% in Q4 2007, one of the highest regional increases.

Over a fifth of employed people in the region worked in the public sector in Q4 2012 (22.6%), the highest proportion among the English regions. This was down 3.2 percentage points since Q4 2010, a larger decline than the England average (a 2.2 percentage point reduction).

Gross disposable household income (GDHI) of residents in the North East was £13,600 per head in 2011. This was 15% below the UK average and the lowest of the English regions. Subregionally, GDHI ranged from £12,610 per head in South Teesside to £16,440 per head in Northumberland.

The North East region’s total GVA in 2011 was £41.4 billion, 3.2% of the UK’s GVA. Tyneside generated 38% of the region’s GVA at £15.7 billion.

In 2010, the largest sector in terms of output was manufacturing, which generated 15.5% of the region’s total GVA. This was followed by human health and social work at 11.0%.

Source: Office for National Statistics

Background notes

  1. Notes and sources:

    The data section of this release (939 Kb Excel sheet)  provides more Economy data. All data are published by ONS except goods export data from HM Revenue and Customs.

    Business Demography 2011 includes definitions of business births (creation), business deaths (closure) and active enterprises. Further releases for businesses by region are available.

    Overseas Trade Statistics (OTS) data and OTS methodologies are available on the HM Revenue and Customs website.

    Gross disposable household income (GDHI) covers the income received by households and non profit-making institutions serving households and is net of tax payments. The data are unsmoothed.
    Use the GDHI per head interactive map to see how it has changed over time at regional level.

    Gross value added (GVA) is a key measure of economic performance. The data used here are consistent with the workplace based series, which allocates the incomes of individuals to their place of work, but are unsmoothed data for individual years.
    GVA interactive charts and maps allow users to select different regions and industries and see their relative significance over the period from 1997 to the latest available year.

    Standard Industrial Classification 2007 (SIC2007) defines the industries.

    Labour Market
    Employment, unemployment and economic inactivity rates are seasonally adjusted Labour Force Survey (LFS) headline indicators.
    Regional employment and economic inactivity rates are data for all people aged 16 to 64.
    Regional unemployment rates are data for all people aged 16 and over.
    Subregional employment data are from the Annual Population Survey (APS).
    Subregional unemployment data are from the Model-Based Estimates of ILO Unemployment for LAD/UAs, which uses APS and other data sources to calculate annual data every quarter.
    Regional Public Sector Employment is expressed as a percentage of all people in employment.
    Regional labour market statistics provides access to the latest key labour market figures.
    Nomis provides access to the most detailed and up-to-date UK labour market statistics from official sources.
    Labour market indicators are defined in the Glossary.
    Interpreting labour market statistics.
    Investigate how unemployment rates have changed over time at regional level.

  2. Further analysis:

    170 Years of Industrial change across England and Wales - 2011 Census statistics provide a rich source of information about the number, distribution and characteristics of the population in England and Wales. 2011 Census Analysis products present specific analyses on a variety of topics, including ethnicity, families, health, labour market, language, migration, and national identity, and religion. In particular, many of the analyses focus on geographical variations, changes over time, and how the census differs to other data sources.

    Regional Economic Indicators, March 2013 article discusses a selection of economic indicators in order to gain an overview of the economic performance of UK regions and countries. In this release a particular focus has been applied to how the regions/countries have fared through the economic downturn that began in 2008.

    The Spatial Distribution of Industries article investigates the patterns of spatial concentration of industries across Great Britain. Data tools and maps are provided for users to explore the data.

    Characteristics of Individual Insolvencies including Bankruptcies, England and Wales, 2011 article explores individual insolvency by region, local authority, age, gender and insolvency type. It is designed to highlight the type of analysis that can be carried out using individual insolvency data and how to use the individual insolvency data visualisation tool. Data on individual insolvency is published by the Insolvency Service.

    The Supply Side of Tourism - The Geography of Tourism Employment report details various aspects of the supply side of tourism. It includes a national level analysis of Gross Value Added (GVA), turnover and employment in the defined set of tourism industries. It also includes an estimate of employment in tourism industries for the regions and nations of the UK. The set of tourism industries used is based on international recommendations.

  3. You may use or re-use this information (not including logos) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email:
  4. Details of the policy governing the release of new data are available by visiting or from the Media Relations Office email:

Further information

Regional Trends, No. 42, 2010 Edition - Portrait of the North East (Pdf 305Kb) - The Portrait of the North East presents a wide range of information covering infrastructure, demographic, environmental and economic statistics for the region.

Content from the Office for National Statistics.
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