Northern Ireland unemployment rate remains low

Northern Ireland's unemployment rate remains below the UK average and the service sector’s annual output here is higher than the UK, a new report released today has revealed.

The Northern Ireland seasonally adjusted unemployment rate was 4.2% for the period September – November 2006. The latest rate is below the UK average of 5.5% and is also considerably lower than the EU27 rate of 7.8% for October 2006.

Figures for the same period estimate that there were 766,000 people in employment in Northern Ireland, however the new figures represent an estimated fall of 0.3% in employment levels over the quarter, but an increase of 1.5% over the year. The number of people claiming unemployment related benefits stands at 26,900. This shows a decrease of 400 from the previous month and is down 1,500 over the year.

The latest seasonally adjusted working age economic inactivity rate in Northern Ireland of 27.5% is slightly higher than the figure recorded for the previous quarter of 27.0%, however the Northern Ireland rate remains significantly higher than the UK average of 21.0% and is the highest among the UK regions.

Commenting on the figures, Enterprise Minister, Maria Eagle, said: "For the last two years the Northern Ireland unemployment rate has been maintained under the 5% mark, underlining the improved performance of the labour market. The latest rate is more than one percentage point below the UK average and is the second lowest rate among the UK regions."

The Distribution - Wholesale & Retail sector (2.4%), Business Services and Finance (15.6%), Transport, Storage and Communication (3.1%), Other Services (1.4%) and Hotels & Restaurants (9.1%) sectors in Northern Ireland all increased over the third quarter of 2006 compared to the same quarter one year earlier.

Results from the Index of Production for the third quarter of 2006 show that Northern Ireland manufacturing output, the main component of the production index, decreased by 1.6% over the quarter and by 0.9% over the year. The equivalent UK figures showed an increase of 0.7% over the quarter and 1.8% over the year.

Over a three year time period Northern Ireland manufacturing output has increased by 5.9%, whereas UK manufacturing has increased by 2.7% since 2003.

Maria Eagle continued: "The annual growth in output levels from the Northern Ireland service sector remains strong and is higher than that recorded for the UK. It is encouraging to note that the most marked increases occurred in the Business Services and Finance sector which is a key area for the development of a high value added service sector economy in Northern Ireland.

As the third quarter results for manufacturing show, we can expect further pressures on traditional industries from overseas competition. We must continue to seek high value added niche opportunities in both the Manufacturing and Service sectors to offset such pressures. Exploiting such opportunities in external markets will be the key to success.”

(EF)