Business

Jobless rate of 5.9 per cent ‘positive' news as benefits claimants drop by 11,000

The unemployment rate in Northern Ireland has decreased again
The unemployment rate in Northern Ireland has decreased again The unemployment rate in Northern Ireland has decreased again

THE north's unemployment rate has continued its downward trajectory, according to the new figures released for December.

The latest jobless figures show the number of people claiming unemployment related benefits decreased by 500 over the month and dropped by 11,000 over the year to 38,700.

Alongside this, the unemployment rate also marginally decreased by 0.1 per cent over the quarter (September to November) to 5.9 per cent.

Long-term unemployment is now 48 per cent, a 4.6 per cent decrease on the previous year, with the proportion of people aged 16 to 64 in work rising over the quarter - and over the year - to 68.8 per cent.

Overall 'economic inactivity' - those not working but also not claiming benefits - also decreased, while the number of people claiming benefits has fallen by 26,000 since the most recent peak in February 2013.

Danske Bank chief economist Angela McGowan said the figures proved a "reasonable level" of growth in the economy and that jobs were still being created.

"It is relatively good news on the jobs front this week in Northern Ireland," she said.

"But there is an issue locally around the pace of current job creation which, in an ideal world, would be much faster than the current level of 12,000 over the last year.

"The number of job vacancies has been rising in Northern Ireland since May last year; indeed the latest monthly figure suggests there are now over 5,000 job vacancies in Northern Ireland.

"This clearly suggests a gap between the skills of those registered as unemployed and the skills required in the current labour market.

"In the latest statistics we can also see evidence of a slow-down in the rate that people are leaving the unemployment register and perhaps more needs to be done to help these individuals re-engage with the workplace."

Despite this, Enterprise Minister Jonathan Bell said the figures contained "positive messages" across a range of key labour market indicators.

"In particular, following reductions in unemployment over the medium term, I welcome the evidence of an increase in the proportion of people in work," he said.

"At 5.9 per cent, the Northern Ireland unemployment rate continues to compare very favourably to the October 2015 rates for the European Union (9.3 per cent) and the Republic of Ireland (8.9 per cent).

"But there is no room for complacency and I will continue to do everything I can to promote economic growth in Northern Ireland.

"It is important that local companies, with the continued support of my Department and InvestNI, seek opportunities for research and development and expansion into new markets in order to improve competitiveness and create new job opportunities for local people."