Unemployment in Northern Ireland remains low

Unemployment in Northern Ireland remains at a historically low level, with the unemployment rate still the lowest among the UK regions.

The seasonally adjusted unemployment rate in Northern Ireland was estimated at 3.8% for the period July - September 2007. This is similar to the estimate for the previous quarter (3.7%), but is down from the figure recorded one year ago (4.7%). The Northern Ireland rate remains below the UK average (5.4%) and is also considerably lower than the EU25 rate (6.7%) for August 2007.

Seasonally adjusted figures for the period July - September 2007 also estimate that there were 779,000 people in employment in Northern Ireland. The new figures represent an estimated fall of 0.8% in employment levels over the quarter, but an increase of 2.0% over the year.

During the last month, the number of people claiming unemployment related benefits increased by 100. The latest seasonally adjusted claimant count figure stands at 23,200, down 4,500 over the year.

The latest seasonally adjusted working age economic inactivity rate in Northern Ireland (27.3%) is slightly up from the figure of 26.6% recorded in the previous quarter. The Northern Ireland rate (27.3%) remains significantly higher than the UK average (21.2%) and is the highest among the UK regions.

Commenting on the figures, Economy Minister Nigel Dodds said: "The Northern Ireland unemployment rate remains consistently low, well below the European average and now the lowest among the UK regions. This, combined with news of a further annual increase in employment, illustrates how the Northern Ireland labour market has strengthened in recent years."

Results from the Annual Survey of Hours and Earnings (ASHE) were also released recently. These show that growth over the year to April 2007 in median gross weekly earnings for all (i.e. both full- and part time) employees in Northern Ireland was 2.5% (to £330.7) compared with growth in the UK of 3.3% (to £374.9).

Northern Ireland full-time employees’ gross weekly earnings in April 2007 (£401.9) were similar to April 2006 (£402.5), whereas UK full-time earnings increased by 2.9% to £456.7. The median gross weekly part-time earnings in Northern Ireland at April 2007 was £141.2, just over 98% of the figure in the UK (£143.9). As such, growth over the year was higher in Northern Ireland (7.9%) than in the UK (4.7%) for part-time employees.

Results also show a widening of the NI/UK private sector pay gap, with full-time private sector gross weekly earnings in Northern Ireland at April 2007 (£364.1) some 83.0% of the figure in the UK, compared to 85.1% in the previous year. Median full-time gross weekly earnings in the public sector in Northern Ireland (£484.2) were almost a third higher than the private sector. This was more marked than in the UK, where public sector earnings were 14% higher than the private sector.

However, it is important to note that changes in NI earnings over the year and relative to the UK are influenced by a range of factors including the timing of pay settlements, the extent of overtime, and changes in the composition of the workforce.

Minister Dodds continued: "Northern Ireland saw a 2.5% increase in pay over the year, reflecting a positive trend in job growth.

“However, the average private sector employee in Northern Ireland only earns 83% of the UK figure and the gap has continued to widen over the year. The only way to address this legacy of low pay, is to move the economy towards more productive and high value added jobs.

“This is a key challenge for the economy and the recent draft Budget and Programme for Government emphasise that the development of a strong private sector is a top priority for the years ahead. It will enable individuals to become better skilled and refocus business support measures on exports, research and development and innovation. All of these will provide a firm basis for the way forward.”

Notes to Editors:

1. General information can be obtained from Martin Monaghan, DETI Statistics Research Branch, on Tel: 028 9052 9421.
2. The Labour Force Survey figures quoted are estimates and are subject to sampling error. This means that the exact figure is likely to be contained in a range surrounding the estimate quoted.
3. Details of the 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: http://www.statistics.detini.gov.uk/ or http://www.detini.gov.uk/cgi-bin/get_builder_page?page=3477
4. Media enquiries should be directed to the DETI Press Office on telephone 028 9052 9604. Out of office hours please contact the Duty Press Office via pager number 07699 715 440 and your call will be returned.