Unemployment Rises In The North

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

The seasonally adjusted unemployment rate in the North, as measured by the Labour Force Survey (LFS), was estimated at 7.1% for the period June to August 2009.

This represented an increase from the rate of 6.3% recorded in the previous quarter and was also up from the rate of 4.3% recorded in the same period one year ago.

This annual increase represented the largest increase in unemployment since the LFS seasonally adjusted series began in 1995 and was the third highest increase among the UK regions.

However, the Northern unemployment rate remained below the UK average (7.9%) and was the equal fourth lowest rate among the UK regions. It was also lower than the European Union (9.0%) and Republic of Ireland (12.5%) rates for July 2009.

The more recent claimant count measure of unemployment stood at 53,800 in September 2009, with the number of claimants having increased by 1,100 over the month.

Although this was the smallest increase in the North for fifteen months, it represented the largest percentage increase (2.1%) of the UK regions (the overall UK increase was 1.3%).

Over the year to September 2009, the number of unemployed claimants in the North increased by 23,800 (79.3%), which was higher than the equivalent UK increase (70.0%).

Seasonally adjusted estimates for the period June - August 2009 showed that there were 745,000 people in employment in the North. This estimate was essentially unchanged from the previous quarter (+0.1%), but was down 5.4% over the year.

The seasonally adjusted number of working age persons that were economically inactive decreased by an estimated 8,000 over the quarter and the corresponding working age economic inactivity rate decreased to 29.3% (in June - August 2009).

However, the Northern inactivity rate (29.3%) remained considerably higher than the UK average rate (21.0%) and was the highest of the UK regions.

The Department was notified of 379 confirmed redundancies (6-8) which took place in September 2009.

This compared to 247 in August 2009 and 202 in September 2008.

There has been a 178% increase in the number of confirmed redundancies over the last year to 30th September 2009 - 4,993 compared to 1,798 in the previous year.

Commenting on the figures, 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. This was the largest annual increase in unemployment since the LFS series began in 1995. 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. I would urge all stakeholders to examine the report's recommendations and respond to the consultation process. In this way we can ensure that we are well placed to address the economic challenges facing Northern Ireland."