Jump in number claiming unemployment benefit in North

The number of people claiming unemployment benefit in the North jumped by the largest number in more than 20 years last month, it was announced today.

The shock rise was driven by the downturn in the construction industry, which accounted for about 60% of the September increase.

Official figures showed the number of claimants increased by 1,200 to 28,900.

It was the largest single rise in claimants since April 1986, and the total is now at its highest for three and a half years.

Output from the North’s services sector fell in the second quarter of the year, it was also announced – though production output figures were up for both the quarter and the year.

Despite the bad news, the general economic gloom was lifted slightly when it was announced a North American telecommunications company was investing in the North and creating jobs.

BTI Systems announced it was setting up a £6m (€7.7m) European headquarters and software centre of excellence in Belfast, creating 60 jobs.

But the impending jobs boost will do little to affect overall unemployment which showed another slight increase in the seasonally adjusted rate – up to 4.3% for the three months to the end of August from the 4.1% in the previous quarter – and well ahead of the 3.7% recorded a year ago.

Economy Minister Arlene Foster said: “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.”

The Department of Enterprise, Trade and Investment in Belfast said despite the rise the unemployment rate in the Northe remained well below the UK average of 5.7%, the 5.9% in Ireland and the 6.8% recorded for the European Union.