Growth in NI unemployment slows

The latest figures show another 1,100 people joined the dole queue in September

Growth in unemployment has shown its smallest monthly rise in more than year, according to the latest government figures

Another 1,100 people joined the dole queues in Northern Ireland last month, raising the total number looking for work to 53,800.

However, the figures suggest the rate of job losses is slowing.

The rise of 2.1% month-on-month was the smallest increase for fifteen months.

However the jobs picture is still gloomy with the unemployment rate in Northern Ireland now over 7%.

This compares to a rate of 4.3% at same time last year.

This represents the largest annual rise in unemployment since the current measurement system began in 1995.

The Northern Ireland unemployment rate remained below the UK average of 7.9%.

However, the Northern Ireland economic inactivity rate of 29.3% remained considerably higher than the UK average rate of 21.0% and was the highest of the UK regions.

In the next year or so local unemployment is expected to rise to an uncomfortable level of 8-9 per cent and potentially levels could rise even further when public spending is cut." Angela McGowan, Northern Bank Economist

People classed as "economically inactive" are those who are not looking for work for reasons like sickness, disability and domestic responsibilities.

Angela McGowan, Northern Bank Economist, has warned that unemployment rates are likely to rise further, even if the economy moves out of recession.

"In the next year or so local unemployment is expected to rise to an uncomfortable level of 8-9 per cent and potentially levels could rise even further when public spending is cut."

"It is important to remember that rising unemployment is not necessarily incompatible with economic recovery. Jobless recoveries have frequently been experienced in the past."

She added that a skills gap could also be a brake on future employment growth.

'Disappointing'

"Northern Ireland's largest challenge lies in the fact that the people who have recently lost their jobs in the manufacturing and construction industries do not have the right skills for obtaining employment in future growth sectors.

"Tackling the skills mismatch for local unemployed people through training courses and education is key to achieving sustainable economic growth over the next number of years."

Commenting on the figures, Enterprise Minister, Arlene Foster said: "It is disappointing to note the latest rise in unemployment levels, but not surprising given the continuing impact of the global recession.

"This was the largest annual increase in unemployment since the Labour Force Survey series began in 1995. The imperative for us in government is to respond in the right way to these short-term job losses to ensure that they don't become more structural or long-term in nature.

"Our focus must rest on creating a high wage and high value employment economy in line with the recommendations of the Independent Review of Economic Policy, which was published last month."