Think tank: UK unemployment rate is three times higher than official unemployment rate

The analysis found that many of the people the superintendent wants to return to work are based in the north of England, but face the biggest barriers to doing so.

Mr Swinney said: A look at the geography shows that these hidden armies of workers are much more numerous in the towns and cities of the North than in the cities of the South.

Of the 10 regions with the highest hidden unemployment rates, nine are in the north of England and one is in Wales. Meanwhile, 8 of the 10 urban areas with the lowest rates are in the South.

Studies have shown that Blackburn, Middlesbrough and Sunderland have the highest rates of hidden unemployment.

The unemployment rate is only 6pc in these cities, but when involuntarily inactive people are included it rises to 21pc in Blackburn and 20pc in Middlesbrough and Sunderland.

Meanwhile, Reading, Basildon and Gloucester have the lowest hidden unemployment rates.

According to Mr Swinney, the main drivers of this geographical gap are health, skill levels and job availability.

He said: Health is a much bigger issue in towns and cities across the north and seems to be driving many of the reasons people don’t come to the job market.

A lot more people don’t have any formal qualifications in this field. People with lower skills are generally much less likely to make it into the job market, he said.

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