Foster comments on latest labour market figures
Wednesday, 17 February 2010Figures released today for the period October to December 2009 recorded a fall in the Northern Ireland unemployment rate to 6.0%.
More recent figures for January 2010 showed an increase of 1,400 over the month in the number of unemployed claimants.
Commenting on the figures, Enterprise Minister, Arlene Foster said: “The Northern Ireland unemployment rate was recorded at 6.0% during the fourth quarter of 2009. This figure was lower than the UK average rate of 7.8%, was the lowest of the UK regions and was below the Republic of Ireland rate of 12.9%.
“However, more recent figures for January 2010 show a sharp increase of 1,400 in the number of people claiming unemployment benefits. The latest monthly increase in claimants was the largest for several months, both in Northern Ireland and throughout the UK, and these results emphasise that the ongoing impact of the economic downturn is still very much with us.
“Most economic commentators believe that unemployment will continue to rise during the first half of 2010, before a sustained economic recovery is translated into jobs growth. The latest claimant count and redundancy figures indicate that this may indeed be the case.
“Our aim remains the same – to provide practical help and support to Northern Ireland businesses to ensure that job losses are minimised. It is imperative that businesses hold onto their key skilled employees if they are to take advantage of the opportunities that a global recovery will undoubtedly bring.”
The Minister delivered her response to the Independent Review on Economic Policy (IREP) report last month and went on to say: “The Independent Review report recognised the need to provide short term support for companies – along the lines we have been doing – to ease pressures resulting from the recession.
“For the medium and longer term, the Review endorsed the policy ambitions of the Executive, namely to build a more value added and productive economy.”
Further information on the latest labour market figures is available in the Labour Market Statistical Press Release (see http://www.detini.gov.uk/deti-stats-index/stats-labour-market.htm).
Notes to Editors:
The superscript numbers throughout the bullet points refer to the relevant endnotes.
· The Northern Ireland seasonally adjusted unemployment rate2, as measured by the Labour Force Survey (LFS), was estimated at 6.0% for the period October - December 2009. This represented a decrease from the rate of 7.1% recorded in the previous quarter, but was up from the rate of 5.3% recorded in the same period one year ago. The Northern Ireland unemployment rate was below the UK average (7.8%) and was the lowest rate among the 12 UK regions. It also remained below the European Union (9.5%) and Republic of Ireland (12.9%) rates for November 2009.
· The seasonally adjusted number of people claiming unemployment related benefits3 stood at 56,100 (6.4% of the workforce) in January 2010 – an increase of 1,400 (2.6%) over the month. This increase was larger than the revised increase of 700 for the previous monthly period and was the largest increase since August 2009. All 12 UK regions recorded an increase in claimant levels to January 2010, with the UK as a whole recording an increase of 1.5%. Over the year, the Northern Ireland claimant count has increased by 43.5% (17,000). The equivalent increase in the UK was 30.5%, with the Northern Ireland annual increase ranking highest of the UK regions.
· Seasonally adjusted estimates for the period October – December 2009 showed that there were 765,000 people in employment in Northern Ireland. This estimate was up 1.7% from the previous quarter, but was down 0.7% over the year.
· The seasonally adjusted number of working age persons that were economically inactive decreased by an estimated 3,000 over the quarter and the corresponding working age economic inactivity rate decreased to 28.3% (in October - December 2009). However, the Northern Ireland inactivity rate (28.3%) remained considerably higher than the UK average rate (21.3%) and was the highest of the twelve UK regions.
· The Department was notified of 147 confirmed redundancies6-8 which took place in January 2010. This compared to 344 in December 2009 and 329 in January 2009. There has been a 47% increase in the number of confirmed redundancies over the last year to 31st January 2010 – 4,410 compared to 2,998 in the previous year.
Endnotes:
1. The Labour Force Survey (LFS) measure of unemployment used in DETI labour market statistical publications is consistent with the International Labour Organisation measure. An explanation of the difference between the LFS and Claimant Count measures of unemployment can be found at http://www.detini.gov.uk/deti-stats-index/stats-labour-market/stats-labour-market-unemployment.htm
2. The official measure of unemployment is sourced to the 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 October - December 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 January 2010 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 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) bulletin, which is available on the following website: http://www.statistics.detini.gov.uk/
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.
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