Rise in unemployment benefit claims
agendaNi analyses the latest labour market report for Northern Ireland which highlights rises in the claimant count and unemployment.
For the first time in over two years, there has been a rise in the number of people claiming unemployment benefit in Northern Ireland, according to the latest statistics released by the Department of Enterprise, Trade and Investment (DETI).
Two hundred extra people signed on in June marking the first increase in the region’s claimant count in 28 months. The UK claimant count increased in the same month, spelling the end of a 31 month decline. Northern Ireland’s level sits at higher than the UK average and is the highest rate among the twelve UK regions.
The proportion of people claiming jobless benefits for over a year in the region was 37 per cent. The Derry and Strabane District Council Area had the highest number of claimants in Northern Ireland. Youth claimants increased over the month of June, but decreased over the year.
However, overall in Northern Ireland, unemployment benefit claimants decreased by 10,400 over the previous 12 months to 44,000. Since the most recent peak in February 2013, the number of people claiming jobless related benefits has fallen by 20,700.
DETI was notified of 274 redundancies in June, an increase of 31 compared to the previous month. Over the 12 month period prior to June, there were 1,928 confirmed redundancies which was a decrease of 9 per cent from the previous year when it stood at 2,128.
The unemployment rate for people aged 16 and over increased by 0.2 percentage points to 6.2 per cent over the quarter, equating to 1,000 less jobs.
However, it changed by -0.4 percentage points, resulting in 4,000 less jobs, over the year.
This remains above the UK’s unemployment rate of 5.6 per cent and is the fifth highest among the twelve UK regions. The UK’s increased by 0.1 percentage points over the quarter and decreased by 0.8 percentage points over the year.
Northern Ireland’s jobless figure also remains below the European Union and Republic of Ireland jobless levels which both stood at 9.7 per cent in April.
The region’s long term unemployment rate was 61.6 per cent for the March to May quarter, an increase of 13.0 percentage points over the year, and almost double the UK average of 31.8 per cent.
Youth unemployment (18-24 year olds) was 19.7 per cent. Although down 0.7 percentage points over the year, it is still much higher than the UK average of 13.2 per cent.
The degree to which people are leaving the unemployment register has been slowing down in recent months, from 1,800 over the month to February to 600 over the month to May.
Economic inactivity
The proportion of economically inactive 16 to 64-year-olds, including students, the sick, disabled, was 27.4 per cent – an additional 19,000 people over the quarter and 18,000 over the year, marking a 0.6 percentage points rise for both categories.
The region’s rate is above the level for the UK, which stands at 22.2 per cent. Over the last quarter, it rose by 0.1 percentage points and 0.2 percentage points over the year.
In Northern Ireland, the employment rate for those aged 16 to 64 stood at 67.9 per cent at the end of May, returning to levels similar to those reported at the end of 2014.
This represented a decrease over the quarter of 0.7 percentage points, or 18,000 people/jobs, and 0.2 percentage points, or 4,000 people/jobs, over the year. Northern Ireland’s employment rate is 5.4 per cent lower than the UK level of 73.3 per cent.
Employment in the UK dropped slightly by 0.1 percentage points over the quarter, but had increased by 0.5 percentage points over the year.
Overall, although the Labour Force Survey for Northern Ireland reported a rise in unemployment for two quarters, this rate remains below those recorded one and two years ago. The claimant count rise for both Northern Ireland and the UK was the first for over two years.
