Foster comments on latest labour market figures

Figures released today for the period November 2009 – January 2010 recorded a small fall in the Northern Ireland unemployment rate (6.3%) over the quarter.

This is in comparison to the period August - October 2009 when the unemployment rate was 6.5%.

More recent figures for February 2010 showed an increase of 100 over the month in the number of unemployed claimants.

In addition, the number of employee jobs fell between September and December 2009. However, this was the smallest decline in the series since June 2008.

Commenting on the figures, Enterprise Minister, Arlene Foster said: “Figures for the final quarter of 2009 showed a fall of 2,890 in the number of employee jobs in Northern Ireland, with the Construction and Service sectors accounting for the majority of the fall. While these job losses are very disappointing, the decrease in the last quarter is less marked than in earlier periods.

“More recent figures from the February 2010 claimant count indicate slower growth in the number of people claiming unemployment benefits this month. The latest monthly increase of 100 claimants compares favourably to last month’s revised increase of 900 and is considerably lower than the average monthly increase of over 1,100 during 2009.”

“Growing the Northern Ireland economy remains the number one priority for the Executive and I remain committed to strengthening the conditions needed for growth.  

“Businesses have already shown considerable flexibility in response to the recession and today’s difficult trading conditions provide yet more evidence of the need to further improve business competitiveness.

“If companies continue to develop greater market awareness and product innovation, they will be able to seize the opportunities that the global upturn will undoubtedly bring.  This will ultimately ensure future employment opportunities for the people of Northern Ireland.”

Further information on the latest labour market figures is available in the Labour Market Statistical Press Release

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 6.3% for the period November 2009 to January 2010.  This represented a decrease from the rate of 6.5% recorded in the previous quarter, but was up from the rate of 5.9% recorded in the same period one year ago.  The Northern Ireland unemployment rate was below the UK average (7.8%) and was the third lowest rate among the twelve UK regions. It also remained below the European Union (9.6%) and Republic of Ireland (13.3%) rates for December 2009.
• The seasonally adjusted number of people claiming unemployment related benefits⁴ stood at 55,700 (6.4% of the workforce) in February 2010 – an increase of 100 (0.2%) over the month. This increase was smaller than the revised increase of 900 for the previous monthly period. Northern Ireland was the only UK region to record an increase in claimant levels to February 2010, with the UK as a whole recording a decrease of 2.0%. Over the year, the Northern Ireland claimant count has increased by 32.6% (13,700). The equivalent increase in the UK was 14.0%, with the Northern Ireland annual increase ranking highest of the twelve UK regions.
• Seasonal adjusted estimates from the Quarterly Employment Survey⁶ showed that there were 699,310 employee jobs filled in December 2009. This represented an estimated net decrease of 2,890 over the quarter and a fall of 20,840 over the year.  The decrease over the quarter was driven by falls in the Construction sector (-1,700) and Service sector (-1,110) jobs.  This was the sixth successive quarterly decrease in the seasonally adjusted employee jobs series. However, this was the smallest decline in employee jobs since the series peaked in June 2008 (employee jobs decreased by 4,900 over the previous quarterly period).
• The seasonally adjusted number of working age persons that were economically inactive decreased by an estimated 2,000 over the quarter and the corresponding working age economic inactivity rate decreased to 28.0% (in November 2009 to January 2010).  However, the Northern Ireland inactivity rate (28.0%) remained considerably higher than the UK average rate (21.5%) and was the highest of the twelve UK regions.
• The Department was notified of 141 confirmed redundancies^7-9 which took place in February 2010. This compared to 161 in January 2010 and 474 in February 2009.  There has been a 26% increase in the number of confirmed redundancies over the last year to 28th February 2010 – 4,091 compared to 3,258 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 the DETI website
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 and economic inactivity rates are sourced to the LFS and refer to the period November 2009 to January 2010. 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 +/- 10,000 of the quoted estimate.
4. The Claimant Count measure of unemployment relates to February 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. The employee jobs figures are sourced to the Quarterly Employment Survey (QES) and refer to the position at the 7^th December 2009 (with the quarterly change measured between September 2009 and December 2009). The QES figures are estimates that are subject to sampling error.
7. 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.
8. 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.
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) bulletin, which is available on the following website
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.