North Yorkshire’s economy is returning to pre-lockdown levels of productivity, according to a county council report.

An authority paper into the performance of the tourism and agriculture dominated area’s economy over the last 12 months underlines how the county’s service industries have bounced back despite facing a range of challenges, such as high inflation.

The study comes as officers work to develop a new economic growth plan for North Yorkshire, and in particular examine the opportunities to bring together the district councils’ roles as local agencies of development in the county’s new unitary authority, to support greater wellbeing and prosperity.

Economic growth officers said the latest data suggests that although the county experienced a greater percentage decline in productivity than the UK as a whole during the pandemic, the recovery in North Yorkshire has been stronger, with the hospitality sector’s resilience being “a key factor”.

The report states how at the height of the pandemic, some 32% of workers – 88,200 – across the county and some 40% in Scarborough district were furloughed, which was among the highest rates in the North of England.

However, it highlights how in January, following the end of furlough schemes, North Yorkshire’s unemployment claimant count stood at 2.5% compared with 4.7% across Yorkshire and Humber and 4.4% for the country.

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Richmondshire District Council corporate board spokesman Richard Good welcomed the low number of unemployment claimants in the area, but said it could prove to be a double-edged sword for the area.

He said: 

The report concludes a key outcome of the pandemic has been the change in workplace practices to more flexibility and the development of a working from home economy.

It states: