Latest Labour Market Figures Released

Figures released today showed a further rise in Northern Ireland’s unemployment figures.

The Northern Ireland seasonally adjusted unemployment rate1, as measured by the Labour Force Survey (LFS), was estimated at 6.7% for the period April to June 2009. This represented an increase from the rate of 6.1% recorded in the previous quarter and was also higher than the rate of 4.2% recorded in the same period one year ago.

However, the Northern Ireland unemployment rate remained below the UK average rate (7.8%) and was fourth lowest of the UK regions. It was also lower than the European Union (8.9%) and Republic of Ireland (11.7%) rates for May 2009.

The more recent claimant count measure of unemployment stood at 51,000 in July 2009, with the number of claimants having increased by 1,500 over the month. However, this monthly increase was the equal smallest increase in the last eleven months. Over the year to July 2009, the number of unemployed claimants in Northern Ireland has increased by 23,900 (88.2%), which is slightly higher than the equivalent UK increase (81.1%).

Seasonally adjusted estimates for the period April to June 2009 also showed that there were 744,000 people in employment in Northern Ireland. This represented an estimated fall of 1.6% in employment levels over the quarter and a decrease of 5.6% over the year.

The seasonally adjusted number of working age persons that were economically inactive increased by an estimated 10,000 over the quarter and the corresponding working age economic inactivity rate increased to 29.5% (in April to June 2009). The Northern Ireland inactivity rate remained significantly higher than the UK average rate (21.0%) and was the highest of the UK regions.

The Department was notified of 135 confirmed redundancies5-8 which took place in July 2009. This compares to the revised figure of 280 in June 2009 and 133 in July 2008. There has been a 185% increase in the number of confirmed redundancies over the last year to 31st July 2009 – 4,680 compared to 1,643 in the previous year.

Commenting on the figures, Enterprise Minister, Arlene Foster said: “Most economies in the developed world have been hit by the global recession, with the fallout from the credit crisis leading to a decline in both consumer and investor confidence. Northern Ireland has not been immune to these conditions and rising levels of unemployment have become an inevitable consequence of the current economic climate. The fact that the Northern Ireland unemployment rate compares favourably to the UK and European Union averages will provide little comfort to those currently out of work.

“My Department and I remain committed to helping businesses through these difficult times. Since the introduction of the £15million Short Term Aid Scheme in June, some 38 businesses have applied for assistance and over £1.1million of support has already been offered by Invest NI. This scheme is designed to help eligible businesses cope with short-term financial difficulties caused by the economic downturn. It is imperative that Northern Ireland businesses hold onto their key skilled employees, so that they will be able to take advantage of improved economic conditions when they arrive. The Short Term Aid Scheme provides a means by which this can happen.

“We will continue to examine ways by which we can provide the most effective assistance to the private sector and, once global conditions improve, develop Northern Ireland into a competitive and successful economy. I will shortly be receiving the report from the Independent Review of Economic Policy. The report, and its recommendations, will help to ensure that policies and programmes relating to the economy, and in particular those of my Department, are best targeted to achieving our objectives of improving productivity and increasing employment.”

Notes to Editors:

1. The official measure of unemployment is sourced to the Labour Force Survey (LFS) and refers to people without a job who were available for work and had either looked for work in the four weeks prior to interview or were waiting to start a job they had already obtained. This definition is consistent with that recommended by the International Labour Office. Unemployment estimates for the European Union and the Republic of Ireland are sourced to EUROSTAT.

2. The figures released today contain data from a number of different sources. The unemployment, employment and economic inactivity rates are sourced to the LFS and refer to the period April to June 2009. It should be noted that the LFS figures are estimates, which are subject to sampling error. This means that the exact figure is likely to be contained in a range surrounding the estimate quoted. For example, the exact number of unemployed persons is 95% likely to fall within +/- 9,000 of the quoted estimate.

3. The Claimant Count measure of unemployment relates to July 2009 and is based on claimant data from Jobs and Benefits Office Administrative Systems. Note this month’s NI July 2009 Claimant Count figures include a small number of temporarily stopped employees in the clerical claims component, which should have been excluded from the processing. These amount to less than 0.1% of all claims and will have a minimal affect (if any) on this month’s levels and rates.

4. Not all those who register for unemployment benefits meet the criteria for LFS unemployment. Conversely, not all those defined as unemployed in the LFS are eligible for unemployment benefits. Estimates of the numbers unemployed may also differ between the two sources due to timing differences.

5. Under the Employment Rights (Northern Ireland) Order 1996 companies are only legally required to notify the Department of impending redundancies of 20 or more employees. Any estimates provided are therefore likely to be an underestimate of total job losses, though it is not possible to quantify the extent of the shortfall.

6. Subject to the criteria mentioned above, employers must notify the Department of a) redundancies proposed and b) redundancies confirmed. Where redundancies occur, the confirmed total provides a better indication of real job losses since all proposed redundancies do not actually take place.

7. Redundancies are recorded by the department once we receive notification from companies in accordance with Employment Rights Order 1996 (Note 5), within a predetermined time frame. Please note, not all media reports of redundancies are included in the official statistics until the department receives formal notification.

8. Redundancies do not necessarily equate to job losses, for example, employees who do not qualify for a redundancy package; those on temporary contracts are not incorporated in redundancy estimates.

9. Details of sampling errors, together with more detailed statistical information and definitions of the methodology used, can be found in the Labour Market Report (LMR) which is available on the following websites http://www.statistics.detini.gov.uk/ and http://www.detini.gov.uk/cgi-bin/downdoc?id=4698

10.For media enquiries, please contact DETI Press Office on 028 9052 9297. Out of office hours, please contact the Duty Press Officer via pager number 07699 715 440 and your call will be returned.

11.General information can be obtained from Martin Monaghan, DETI Statistics Research Branch, on Tel: 028 9052 9421.