More Short Term Jobs Losses Predicted

Unemployment in Northern Ireland could rise by as much as 1,000 every month this year, an economist has said. The claim comes just days after fears were expressed that as many as 20,000 more jobs could be lost across Northern Ireland over the whole of 2009.

Sir Reg Empey, the Minister for Employment and Learning, made his grim prediction last week, with today's news, by the Bank of Ireland Head of Economics and Research increasing pressure on him to 'do more'.

The bank's Alan Bridle said in a report published today that the total out of work would increase from about 34,000 to 50,000.

"The jobless rate is expected to rise to around 6%," said Mr Bridle.

However, the report said that Northern Ireland should be better placed to ride out the global economic downturn than other countries.

"In 2009 the economy will contract by around 1%," he said.

"While such an outcome will effectively mean that as a region we are no better off than we were in late 2007, we should be better placed than either the UK overall or the Republic of Ireland where the downturn has been of greater magnitude."

Mr Bridle also said the local economy was experiencing its own "self-made property shock" which gave this downturn a "new dimension".

"In many ways, a recovery in the housing market in terms of transaction activity rather than prices is a necessary condition to a broader-based pick-up in general confidence levels," he said.

By way of illustration, just last weekend, the future of the Spanboard chipboard manufacturing plant on the outskirts of Coleraine were in doubt.

UUP East Londonderry Assembly member David McClarty said fears are growing for the firm. Commenting on news that upwards of 80 jobs are to go at the Portuguese owned operation at Castleroe, Mr McClarty said: "This is yet another serious setback for the Coleraine area coming on top of impending redundancies at the AVX plant.

"Spanboard has been a major employer but it too is being hit by the present recession and last July announced it was reducing its production to five days a week for a period because of the recent downturn in the building industry.

"The loss of these jobs means that staffing level will be around 25, giving rise to concern about the future of the plant," he commented.

However, amid the doom and gloom, a national report today has highlighted extensive job opportunities.

The report 'Working Futures', was published by the independent employer body, the UK Commission for Employment and Skills.

It predicts employment trends over the next 10 years and shows that despite the current economic downturn job prospects remain good.

The report says that there will be some sectors of the economy where growth will be particularly strong including computing and the service sector, and paints an optimistic picture for the labour market over the long term to 2017.

See: SF Want Empey To Do More On Dole Queues

See: Denham Welcomes New Jobs Report

(BMcC/JM)