NI Unemployment Rises

Unemployment continues to rise in Northern Ireland, with the period January - March 2013 showing a 0.3% increase on the previous quarter.

The latest Labour Force Survey (LFS) shows unemployment stood at 8.1% for the period, which is up 1.4% on the rate recorded one year ago (6.8%).

The Northern Ireland unemployment rate is above the UK average rate (7.8%), which itself increased by 0.1% over the quarter.

It is, however, still below the EU (10.9%) and Republic of Ireland (14.2%) rates for February 2013.

According to the statistics, which cover the first quarter of 2013, 60.3% of those unemployed in Northern Ireland have been unemployed for one year or more.

This is up 13.7% from one year ago

The unemployment rate for 18-24 year-olds stands at 21.1% - up 3.3% over the year.

Despite this, the number or claimants did fall over the past month.

The seasonally adjusted number of people claiming unemployment related benefits stood at 64,300 in April 2013; down 200 from the revised figure for the previous month.

The report says there has been a fall of 600 in the claimant count over the most recent three months and that this is the first time there has been a fall in three consecutive months since August 2007.

Despite this good news, the Northern Ireland claimant count rate still stood at 7.1% in April 2013, making it the second highest among the twelve UK regions. The UK rate was 4.5%.

This is now the 37th consecutive month that NI has had the highest or second highest UK regional unemployment rate.

The wider picture shows that over the year, the Northern Ireland claimant count has increased by 3.4% (2,100), compared to a decrease of 4.3% in the UK.

The annual increase in Northern Ireland was the highest among the UK regions.

Estimates for the period January - March 2013 show there were 793,000 people in employment in Northern Ireland.

The NI employment rate (66.6%) was below that of the UK (71.4%), which decreased by 0.2% over the quarter and increased by 0.8% over the year.

Enterprise Minister Arlene Foster said: "Although there has been a rise in the unemployment rate over the quarter, the number of people on the claimant count in February has decreased. It is encouraging that the claimant count has now decreased for three consecutive months for the first time since August 2007.

"This fall of 600 in the claimant count over the last three months is very welcome. While it is too early to read too much into this, as there is still considerable uncertainty in the global economy, is important that we build on these positive signs.

"Over 1000 new jobs have been announced within the last week, the majority of which are high value with an average salary above the private sector average. This includes yesterday’s announcement that Allstate are to create up to 650 new high quality jobs at their locations in Belfast, Londonderry & Strabane, which is a welcome boost for the North West.

"My continued aim is to ensure the Executive collectively supports a business environment that is attractive to inward investors and encourages locally owned companies to grow."

Danske Bank Chief Economist Angela McGowan said: "From an economic perspective youth unemployment is also a real cause for concern. In Europe the economic cost of youth unemployment was estimated to be equivalent to 1.2 per cent of GDP in terms of the cost of welfare benefits and lost output. For Northern Ireland the equivalent cost would amount to nearly £350m per year.

"With non-graduates being twice as likely to be unemployed as graduates, the emphasis on increased educational attainment for young people cannot be over-stated."

(IT/CD)