Unemployment rises by 1,600 in the North

Unemployment in the North has risen by another half per cent as an extra 1,600 people joined the dole queues, British Government figures revealed today.

The North's Enterprise Minister Arlene Foster said the scale of the recession was unprecedented in the post-war era and its effect on the North had been stark.

The seasonally-adjusted unemployment rate, as measured by the Labour Force Survey, was estimated at 6.7% for the period May to July – up from the 6.2% of the previous quarter and 4.4% of a year ago.

The number of people claiming unemployment-related benefits hit 52,700 in August, up by 1,600 on the month and 24,400 on a year ago.

The annual increase of 86.2% was well ahead of the UK rise of 75.9%, suggesting the recession is hitting harder in Northern Ireland than elsewhere.

But the North's unemployment rate remains below the UK average of 7.9% and was joint second lowest among the regions. It was well below the 8.9% of the EU and the 12.2% of the Republic of Ireland.

The Quarterly Employment Survey showed 709,040 employee jobs filled, a drop of 5,470 over the quarter and 25,450 over the past year.

The Department of Enterprise, Trade and Investment said there had been a 184% leap in confirmed redundancies in the past year.

The manufacturing sector bore the brunt of the job reductions over the quarter - 2,190. It was followed by the service sector, down 1,600, and construction, down 1,580.

The minister said: “The scale of the current recession has been unprecedented in the post-war era and its effect on the Northern Ireland economy has been stark.

“ While some recent reports have indicated that the world economy is beginning to stabilise, it is anticipated that the fall-out from the downturn will be with us for some time to come.”

Mrs Foster said that with the number of people receiving unemployment benefits increasing again, it was imperative that the Stormont Executive continued its efforts to support companies in the North through the difficult period.

“I am preparing to lead an Invest Northern Ireland trade mission to India next week, where I intend to meet with existing and potential Indian investors.

“India offers a range of opportunities for innovation and export-focused business and I am determined to continue to promote Northern Ireland as a region which meets the needs of inward investors who are seeking talented resources and a cost effective location,” she said.