Latest labour market figures released

Figures released today showed another marked increase in unemployment benefit claimants over the month and a rise in the Northern Ireland unemployment rate.

The number of people claiming unemployment related benefits increased by 2,200 (+6.1%) during the latest month to 38,400 in January 2009. This increase was similar to that recorded in the previous monthly period to December 2008 (+2,100). The Northern Ireland increase in January 2009 (+6.1%) was slightly lower in relative terms than the equivalent increase for the whole of the UK (+6.4%).

However, the Northern Ireland increase over the year to January 2009 was 14,700 (+62.0%) and this was higher in percentage terms than that recorded for the UK (+55.1%). The annual percentage increase in Northern Ireland (+62.0%) was the highest since the claimant count series began in January 1971. Nearly 80% of the annual increase occurred in the last six months.

The District Council areas that showed the highest percentage increase in levels over the year to January 2009 were Magherafelt (an increase of 536 persons or 189.4%), Dungannon (727 persons or 161.9%) and Cookstown (471 persons or 149.5%). However, it should be noted that the unemployment rates for these three areas were still equal to or below the Northern Ireland average.

The Northern Ireland seasonally adjusted unemployment rate1, as measured by the Labour Force Survey, was estimated at 5.1% for the period October to December 2008. This represented an increase from the rate of 4.1% 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 (6.3%) and was also lower than the European Union (7.2%) and Republic of Ireland (7.9%) rates for November 2008.

Seasonally adjusted estimates for the same period showed that there were 774,000 people in employment in Northern Ireland. This represented a fall of 1.8% in employment levels over the quarter and a decrease of 1.1% over the year.

The seasonally adjusted number of working age persons that were economically inactive increased by an estimated 6,000 over the quarter and the corresponding working age economic inactivity rate increased to 27.4%. The Northern Ireland inactivity rate remained considerably higher than the UK average rate (20.8%) and was the highest of the UK regions.

The Department was notified of 679 proposed redundancies over the period mid January 2009 to mid February 2009. This compares to 577 proposed redundancies notified to the Department in the previous monthly period. Over the twelve monthly period there were a total of 2,882 confirmed redundancies in Northern Ireland, an increase of 54% (1,007) from the previous year.

Commenting on the figures, Economy Minister, Arlene Foster said: "Last month showed another sharp increase in the registered unemployed and the increase over the last six months has been particularly marked. Nearly 80% of the annual increase in claimants has occurred since July 2008. However, although our unemployment rate has risen to just over 5%, it is still below the UK average. That said, it is clear the local economy, in line with other UK regions, is facing very immediate economic pressures.

“Northern Ireland cannot expect to emerge unscathed from the global downturn, however, we are working to limit its detrimental impact. At this point, I would encourage businesses to re-visit their strategies for change, to ensure they remain flexible and resilient in the face of adverse economic conditions. Improvements in competitiveness and quality, combined with the opportunities offered by the sterling exchange rate, can help offset the worst effects of the global slowdown.”

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 October - December 2008. 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 January 2009 and is based on claimant data from Jobs and Benefits Office Administrative Systems.
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 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.
8. 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/get_builder_page?page=4449&site=4&parent=60
9. 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.
10. General information can be obtained from Martin Monaghan, DETI Statistics Research Branch, on Tel: 028 9052 9421.