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Recession continues to take its toll on jobs

Thursday, 15 October 2009

Unemployment rose by 1,100 in Northern Ireland last month - the smallest amount in the last 15 months, new figures have revealed.

It means that 53,800 people are now claiming Jobseekers' Allowance in the province.

However, while the rate of unemployment appears to be slowing, Northern Ireland is lagging behind the rest of UK.

Although the monthly increase was the smallest in more than a year in Northern Ireland, it represented the largest percentage increase (2.1%) of the UK regions (the overall UK increase was 1.3%).

Over the year to September, the number of unemployed claimants in Northern Ireland increased by 23,800 (79.3%), which was higher than the equivalent UK increase (70.0%).

There was also bad news in relation to the seasonally adjusted unemployment rate, which now stands at 7.1% for the three months to August, up from 4.3% in the same period last year. The increase in unemployment was the largest since the Labour Force Survey began in 1995 and was the third highest in the UK.

But the Northern Ireland unemployment rate remained below the UK average (7.9%) and was also lower than the European Union (9%) and Republic (12.5%) rates for July. Official data showed UK unemployment rising to 2.47 million in the three months to August - an increase of 88,000 on the quarter to May.

Enterprise Minister Arlene Foster said: "It is disappointing to note the latest rise in unemployment levels, but not surprising given the continuing impact of the global recession.

"The imperative for us in government is to respond in the right way to these short-term job losses to ensure that they don't become more structural or long-term in nature.

"Our focus must rest on creating a high wage and high value employment economy in line with the recommendations of the Independent Review of Economic Policy, which was published last month."

Output from the Northern Ireland service sector was relatively unchanged over the latest quarter, but output from the production sector fell once again.

The figures come just days after the latest Ulster Bank PMI report indicated that Northern Ireland was the only UK region waiting to return to growth.

Minister Foster said: "These results indicate that economic recovery will not be a straightforward process and it could be some time before we see the steady growth recorded in previous years."

Angela McGowan, an economist from Northern Bank, said the weakening labour market clearly reflected the dip in economic activity in the province.

"Keeping things in perspective is important, and although devastating for individuals affected, the current unemployment level in Northern Ireland is still not comparable to the high levels reported elsewhere," she said.

"Northern Ireland's largest challenge lies in the fact that the people who have recently lost their jobs in the manufacturing and construction industries do not have the right skills for obtaining employment in future growth sectors. Tackling the skills mismatch for local unemployed people through training courses and education is key to achieving sustainable economic growth over the next number of years."

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