Northern Unemployment Declines Slightly To 4.1%

The Northern seasonally adjusted unemployment rate was estimated at 4.1% for the period July - September 2008.

This was similar to the rate of 4.2% recorded last quarter, but was up from the rate of 3.8% recorded in the same period one year ago.

The latest Northern rate remained below the UK average (5.8%) and was lowest among the UK regions. It also compared favourably to the European Union rate (6.9%) and the Republic of Ireland rate (6.2%) for August 2008.

Seasonally adjusted estimates for the same period showed that there were 788,000 people in employment in the North.

The new figures represented a slight decrease of 0.1% in employment levels over the quarter, but a rise of 0.7% over the year.

The number of people claiming unemployment related benefits increased by 1,100 during the latest month to 30,300 in October 2008.

This increase was similar to that recorded last month (1,200), which was the largest monthly increase in over twenty years.

The Construction industry accounted for approximately 65% of the rise in claimants in October.

The number of unemployed claimants in the North in October 2008 (30,300) was about the level reported some four and a half years ago (30,600 in June 2004).

There were 805 confirmed redundancies in October 2008 compared to 116 in September 2008.

This reflects the impact of job losses at companies such as Seagate (Limavady) and consequently was the highest monthly level of confirmed redundancies since October 2000.

However, the number of outstanding redundancies (i.e. proposed but not confirmed), of which the Department is already aware (1,308) is only slightly higher than this time one year ago (1,274).

The latest seasonally adjusted working age economic inactivity rate in the North (26.9%) has increased slightly from the figure of 26.8% recorded for the previous quarter.

The Northern rate (26.9%) continued to be significantly higher than the UK average (20.9%) and is the highest among the UK regions.

Commenting on the figures, Northern Enterprise Minister, Arlene Foster said: "It is clear that we are continuing to experience the fall-out from the slowdown in the construction industry, with nearly two-thirds of this month's increase in unemployment benefit claimants relating to people usually employed in that sector.

"However, it is important to keep this in perspective. Overall, the number of people claiming unemployment benefits is still relatively low in historical terms and we are not alone in feeling the effects of the downturn in the global economy.

"Our latest unemployment rate remained well below the European Union average and was lowest among the UK regions."