Latest Labour Market figures released

Figures released today recorded a fourth successive quarterly fall in the number of Northern Ireland jobs and a further rise in unemployment levels.

The Northern Ireland seasonally adjusted unemployment rate, as measured by the Labour Force Survey (LFS), was estimated at 6.7% for the period May to July 2009. This represented an increase from the rate of 6.2% recorded in the previous quarter and was also higher than the rate of 4.4% recorded in the same period one year ago.

However, the Northern Ireland unemployment rate remained below the UK average rate (7.9%) and was joint second lowest among the UK regions. It was also lower than the European Union (8.9%) and Republic of Ireland (12.2%) rates for June 2009.

The more recent claimant count measure of unemployment stood at 52,700 in August 2009, with the number of claimants having increased by 1,600 over the month. Over the year to August 2009, the number of unemployed claimants in Northern Ireland increased by 24,400 (86.2%), which was higher than the equivalent UK increase (75.9%).

Seasonal adjusted estimates from the Quarterly Employment Survey showed that there were 709,040 employee jobs filled in June 2009. This represented an estimated net decrease of 5,470 over the quarter and a fall of 25,450 over the year. The decrease over the quarter was driven by falls in the Manufacturing sector (-2,190), the Service sector (-1,600) and Construction sector jobs (-1,580). This was the fourth successive quarterly decrease in the seasonally adjusted employee jobs series (employee jobs decreased by 6,940 over the previous quarterly period).

The seasonally adjusted number of working age persons that were economically inactive increased by an estimated 5,000 over the quarter and the corresponding working age economic inactivity rate increased to 29.5% (in May to July 2009). The Northern Ireland inactivity rate remained significantly higher than the UK average rate (21.1%) and was the highest of the UK regions.

The Department was notified of 247 confirmed redundancies which took place in August 2009. This compared to 143 in July 2009 and 120 in August 2008. There has been a 184% increase in the number of confirmed redundancies over the last year to 31 August 2009 – 4,816 compared to 1,693 in the previous year.

Commenting on the figures, Enterprise Minister, Arlene Foster said: “The scale of the current recession has been unprecedented in the post-war era and its effect on the Northern Ireland economy has been stark. While some recent reports have indicated that the world economy is beginning to stabilise, it is anticipated that the fall-out from the downturn will be with us for some time to come.

“The number of people in receipt of unemployment benefits in Northern Ireland increased once again in August. It is therefore imperative that we continue with our efforts to support Northern Ireland companies through this difficult period.

“I am preparing to lead an Invest NI trade mission to India next week, where I intend to meet with existing and potential Indian investors. India offers a range of opportunities for innovation and export focussed business and I am determined to continue to promote Northern Ireland as a region which meets the needs of inward investors who are seeking talented resources and a cost effective location.”

The Minister encouraged companies to take advantage of the short-term measures of assistance that are available at this time, and stressed her commitment towards building a sustainable economic future for Northern Ireland.

She said: “Programme’s such as Invest NI’s £15 m Short-Term Aid Scheme and £5 m Accelerated Support Fund have been developed specifically to advise and support eligible businesses at this difficult time. I would encourage all such companies to take advantage of the help available.

“The longer-term priorities for Northern Ireland also remain a keen focus for me. To that end, I am now looking forward to considering the findings and recommendations of the Independent Review of Economic Policy that I expect to receive shortly. The report will help us plan for the medium to longer term and, in particular, indicate how we can further work toward meeting the economic goals contained in the Programme for Government.”

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 May to July 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 +/- 10,000 of the quoted estimate.
3. The Claimant Count measure of unemployment relates to August 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 1st June 2009 (with the quarterly change measured between March 2009 and June 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 DETI website here and here.
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.
11. General information can be obtained from Martin Monaghan, DETI Statistics Research Branch, on Tel: 028 9052 9421.