NI Unemployment Up

September saw the largest monthly increase in unemployment claimants in 22 years, new government figures have revealed.

Statistics from the Business Department show unemployment in Northern Ireland grew by 4.3% during the summer - however, the rate remained below the UK and European Union average.

Output from the province's service sector fell in the second quarter of 2008, while production output increased over the quarter and the year.

The Northern Ireland seasonally adjusted unemployment rate was estimated at 4.3% for the period June to August 2008.

This represented a slight increase from the rate of 4.1% recorded last quarter and was also higher than the rate of 3.7% recorded in the same period in 2007.

Despite this increase, the Northern Ireland unemployment rate remained below the UK average (5.7%) and was also lower than the European Union (6.8%) and Republic of Ireland (5.9%) rates for July 2008.

It is estimated 788,000 Northern Ireland people are in employment.

This represented a fall of 0.9% in employment levels over the quarter, but a rise of 1.5% over the year.

The number of people claiming unemployment related benefits increased by 1,200 during the latest month to 28,900 in September 2008.

This represented the largest single monthly increase in unemployed claimants since April 1986.

Economy Minister Arlene Foster said: "The latest labour market figures show some further increases in unemployment. While this is disappointing, it is not entirely unexpected.

"The slow-down in the housing market and wider construction industry in particular is having a large impact, with former construction workers accounting for the majority of the rise in benefit claimants during September."

Ms Foster said Northern Ireland cannot expect to be immune from the dramatic changes in the financial markets.

The Minister suggested business and consumer confidence has also been affected by price rises and economic uncertainty.

"Nevertheless, this must be considered in the context of the positive results from the production sector, which has shown increased output over the quarter and the year.

"In these times of economic uncertainty, the most innovative and productive companies are better positioned to weather the economic downturn," added Ms Foster.

(PR/JM)