Construction industry main driver in North unemployment rise

The continuing collapse of work in the construction industry was the main driver in an increase in unemployment claimants in the North, which was one of the biggest in more than 20 years, government figures showed today.

The number of people signing on for unemployment benefits increased in the last month by 1,100, bringing the total to 30,300 and back to the same level it was at nearly four and a half years ago.

Last month’s figures showed a similar jump, 1,200, which was the highest increase in over two decades.

North Enterprise Minister Arlene Foster warned economic conditions may get worse yet before things get better.

Her Department of Enterprise, Trade and Investment said the construction industry accounted for about 65% of the rise in claimants.

The headline seasonally adjusted unemployment total for the three months from July – September was actually down slightly.

The total of 33,000 was down 1,000 on the previous three month period but up 2,000 on the year. It translated into an unemployment rate of 4.1%, down from the 4.2% reported for the previous quarter, but up on the 3.8% of a year ago.

The latest rate remains below the UK average of 5.8% and was the lowest of all UK regions.

Seasonally adjusted estimates for the number of people in employment put the total at 788,000, down 0.1% over the quarter but up 0.7% over the year.

There were 805 confirmed redundancies in October, compared with 116 in September – largely reflecting companies like technology firm Seagate which closed its Co Londonderry plant in the summer.

It was the highest total of confirmed redundancies since October 2000, and the Department said they were aware of another 1,308 proposed but not confirmed redundancies in the pipeline.

Mrs Foster said: “It is clear we are continuing to experience the fall-out from the slowdown in the construction industry, with nearly two-thirds of this month’s increase in unemployment benefit claimants relating to people usually employed in the sector.”

However she said it was important to keep the rise in perspective. “Overall the number of people claiming unemployment benefits is still relatively low in historical terms and we are not alone in feeling the effects of the downturn in the global economy.”

She said she was not in the business of exaggerating the downturn , but warned: “Economic conditions may get worse before they get better.

“We must focus on our ultimate goals. Companies that can keep business costs low, while remaining innovative in their product development will emerge stronger and better placed to compete internationally.

“Even in the context of difficult economic conditions, there is still scope for high value added business to find a niche for their products and services.”

Mrs Foster today visited a Co Antrim engineering company – Williams Industrial Services on Mallusk – where she announced it was investing £3.3m (€4m) to develop new products, recruit 24 high-skilled people and mount a major export drive.