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14 November 2008 - Slight reduction in Northern Ireland pay gap with UK average

Northern Ireland earnings estimates released today, showed some progress in closing the gap with the UK average.

Provisional results from the Annual Survey of Hours and Earnings (ASHE) showed that growth over the year to April 2008, in median gross weekly earnings for all (i.e. both full and part time) employees in Northern Ireland, was 5.1% (to £346.5). This was higher than the comparable average UK growth of 3.3% (to £388.4).

However, when full-time employee earnings in Northern Ireland are compared with those for the whole of the UK, the results showed that growth rates over the year were broadly similar. Gross weekly full-time earnings among Northern Ireland employees increased by 4.3% over the year, compared to 4.6%, in the UK. The median gross weekly earnings for such full-time employees in Northern Ireland at April 2008, was £417.6, or 87% of the UK figure (£478.6).

Improvements in part-time employees’ earnings have contributed most to higher growth rates in Northern Ireland. As such, growth over the year was substantially higher in Northern Ireland (6.7%) than in the UK (2.3%) for part-time employees. The median gross weekly part-time earnings in Northern Ireland at April 2008, was £150.3, over 2% higher than the figure in the UK (£147.0). Hourly rates of pay (excluding overtime) for part-time employees increased by 6.3% in Northern Ireland, compared to 3.4% in the UK.

Results also showed a slight widening of the NI/UK private sector pay gap, with full-time private sector gross weekly earnings in Northern Ireland at April 2008 (£377.1) some 82.0% of the figure in the UK (£460.0), compared to 82.7% in the previous year. Median full-time gross weekly earnings in the public sector in Northern Ireland (£498.8) continued to be 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.

Commenting on the figures, Enterprise Minister, Arlene Foster said: “Northern Ireland saw a 5.1% increase in pay over the year, reflecting a positive trend in earnings. Any closing of the pay gap with the whole of the UK is to be welcomed. The fact that part-time earnings increased at a faster rate than in the UK as a whole, is also encouraging. Such improvements are not to be discounted given the increasing cost pressures that consumers face.

“However, these results cannot be examined in isolation. Economic output is falling throughout the developed world and the Northern Ireland economy is far from insulated from these trends. This, coupled with pressure on jobs, increases uncertainty for families up and down the country.

“Recent trends represent a key challenge for the economy and highlight the importance of generating high value-added jobs to develop Northern Ireland’s knowledge-based economy. The Programme for Government has sought to address this by putting in place demanding targets, including the development of a strong private sector. Therefore, I would encourage businesses to lead the way by continually improving products and services and seeking out new markets for growth. This will provide a firm basis for the way forward.”

Notes to Editors:

1. More detailed statistical information and definitions of the methodology used, can be found in the Northern Ireland Annual Survey of Hours and Earnings 2008 statistical bulletin, which is available on the following website: http://www.statistics.detini.gov.uk/

http://www.detini.gov.uk/cgi-bin/downdoc?id=4043

2. 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.

3. General information can be obtained from Brian Spence, DETI Statistics Research Branch, on Tel: 028 9052 9424


November 2008 news releases News