The Northern Ireland seasonally adjusted unemployment rate1, as measured by the Labour Force Survey, was estimated at 6.2% for the period February to April 2009. This represented an increase from the rate of 5.7% recorded in the previous quarter and was also up from the rate of 4.0% recorded in the same period one year ago. However, the Northern Ireland unemployment rate remained below the UK average (7.2%) and was also lower than the European Union (8.3%) and Republic of Ireland (10.6%) rates for March 2009.
The more recent claimant count measure of unemployment stood at 48,000 in May 2009, with the number of claimants having increased by 1,900 over the month. While this is the smallest rise in the last seven months, the increase in the previous month was broadly similar (2,000). Over the year to May 2009, the number of unemployed claimants in Northern Ireland has increased by 23,100 (92.8%), which is slightly higher than the equivalent UK increase (88.7%). Just over half of the annual increase (58% or 13,300) in Northern Ireland has occurred in the last 6 months.
Seasonal adjusted estimates from the Quarterly Employment Survey showed that there were 715,050 employee jobs filled in March 2009. This represented an estimated net decrease of 6,220 over the quarter and a fall of 19,030 over the year. The decrease over the quarter was driven by falls in Service sector (-2,770), Manufacturing sector (-1,790) and Construction sector jobs (-1,520). This was the third successive quarterly decrease in the seasonally adjusted employee jobs (employee jobs decreased by 6,500 over the previous quarterly period).
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 29.0% (in February – April 2009). 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 321 confirmed redundancies6-8 which took place in May 2009. This compares to 545 in April 2009 and 155 in May 2008. There has been a 156% increase in the number of confirmed redundancies over the last year to 31st May 2009 – 4,433 compared to 1,735 in the previous year.
Commenting on the figures, Enterprise Minister, Arlene Foster said: “While unfortunately these figures come as no surprise, it is still very disappointing to note that there have been further falls in employment and increased unemployment in Northern Ireland. Global markets are continuing to adjust to the impact of the current downturn and we are still experiencing its negative effects. That said, our unemployment rate (6.2%) still compares favourably to the UK (7.2%) and European Union (8.3%) averages, though this will be no consolation to those currently out of work.
“We will continue to provide whatever practical support and advice we can to help businesses through this challenging time. I would encourage companies to examine the range of programmes on offer, such as the £15million Short Term Aid Scheme announced last month, and avail of this assistance, where appropriate.”
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 February to April 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 May 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. The employee jobs figures are sourced to the Quarterly Employment Survey (QES) and refer to the position at the 2nd March 2009 (with the quarterly change measured between December 2008 and March 2009). The QES figures are estimates that are subject to sampling error.
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.detini.gov.uk/cgi-bin/downdoc?id=4526.
10. 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.
10. General information can be obtained from Martin Monaghan, DETI Statistics Research Branch, on Tel: 028 9052 9421.
