Latest labour market figures released

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

The Northern Ireland seasonally adjusted unemployment rate (Note1below), as measured by the Labour Force Survey (LFS), was estimated at 6.1% for the period January to March 2009.

This represented an increase from the rate of 5.1% recorded in the previous quarter and was also higher than the rate of 4.6% recorded in the same period one year ago. However, the Northern Ireland unemployment rate remained below the UK average rate (7.1%) and was fifth lowest of the UK regions. It was also lower than the European Union (7.9%) and Republic of Ireland (10.0%) rates for February 2009.

The more recent claimant count measure of unemployment stood at 46,100 in April 2009, with the number of claimants having increased by 2,000 over the month. Over the year to April 2009, the number of unemployed claimants in Northern Ireland has increased by 21,900 (90.5%), which is similar to the equivalent UK increase (88.6%). The majority of the annual increase (14,600) in Northern Ireland has occurred in the last six months.

Seasonally adjusted estimates for the period January to March 2009 also showed that there were 756,000 people in employment in Northern Ireland. This represented an estimated fall of 2.3% in employment levels over the quarter and a decrease of 3.7% over the year.

The seasonally adjusted number of working age persons that were economically inactive increased by an estimated 14,000 over the quarter and the corresponding working age economic inactivity rate increased to 28.6% (in January to March 2009). The Northern Ireland inactivity rate remained significantly higher than the UK average rate (20.7%) and was the highest of the UK regions.

The department was notified of 523 confirmed redundancies (Notes 5-8 below) which took place in April 2009. This compares to 674 in March 2009 and 136 in April 2008. There has been a 159% increase in the number of confirmed redundancies over the last year to 30 April 2009 – 4,249 compared to 1,643 in the previous year.

Commenting on the figures, Enterprise Minister, Arlene Foster said: "Unemployment levels in Northern Ireland have continued to rise, as the global recession continues to impact on our local economy. During the last year, the Northern Ireland unemployment rate has increased from 4.6% to the latest figure, which stands at 6.1%.

“We have not been alone in experiencing a deterioration in labour market conditions. Most UK regions and EU countries have also recorded large increases in their unemployment figures. However, the current Northern Ireland rate remains below both the UK and European Union averages.”

The Minister reinforced her commitment to helping local companies through this challenging recession.

She said: “This is undoubtedly a very challenging time for Northern Ireland businesses, as global economic conditions continue to impede product demand and growth. My department and I are committed to doing everything we can to limit the impact of the recession and to help Northern Ireland companies through this difficult time.

“We are continuing to work closely with the private sector to identify the areas where we can provide the most effective assistance and through Invest NI, we have already implemented a range of programmes to provide practical support and advice. Our aim is not only to help companies through this recession, but also to encourage them to become better placed so they can exploit the opportunities that will arise, when the global upturn comes.”

Notes to Editors:

1. The Northern Ireland Labour Market statistics have been released today, Tuesday 12 May 2009, due to an accidental early release of some data by the Office for National Statistics UK.
2. 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.
3. 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 January to March 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.
4. The Claimant Count measure of unemployment relates to April 2009 and is based on claimant data from Jobs and Benefits Office Administrative Systems.
5. 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.
6. 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.
7. 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.
8. 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.
9. 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.
10. 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 website, here and here.
11. For media enquiries, please contact DETI Press Office on 028 9052 9297. Outside office hours, please contact the Duty Press Officer via pager number 07699 715 440 and your call will be returned.
12. General information can be obtained from Martin Monaghan, DETI Statistics Research Branch, on Tel: 028 9052 9421.