A VOTE for a Brexit would hinder job creation in Northern Ireland, a leading economist has claimed.
Angela McGowan, chief economist at Danske Bank in the north said a decision to leave the European Union would impede an already challenging economic future for Northern Ireland.
She was commenting after the latest set of figures outlining the scale of joblessness in the north.
And although the data showed a relatively positive performance of the labour market, Ms McGowan said worse was expected over the next quarter.
Official statistics actually show the number of people in Northern Ireland classed as economically inactive is at its lowest level since 1995.
It comes after the number of people claiming unemployment related benefits fell by 600 last month to 37,900.
However the unemployment rate increased by 0.3 percentage points over the first three months of the year to 6.2 per cent.
The economic inactivity rate was 26.3 per cent which, although an all-time low, is much higher than the UK average of 21.7 per cent.
Ms McGowan said the data showed "the local economy was still coasting along at a reasonable pace between January and March as benefit claimant numbers fell and the employment rate inched up."
But she added: "The quarter one data presented this week is reasonably good but the expectation is for quarter two data to soften as many investment decisions are currently on hold in the run up to the EU referendum.
“There are still plenty of local challenges, including long-term unemployment, youth unemployment and low wages. Hopefully the new Programme for Government will set out a clear plan for addressing these issues, but people in Northern Ireland should also realise that remaining within the European Union is an important aspect of building our economic future."
She said a vote for a Brexit was "likely to present a huge economic shock for the UK, for Europe and also for Northern Ireland".
"Job creation in a Brexit scenario would prove extremely difficult as uncertainty will rise, investment would fall (both domestic and foreign direct investment) and employers would be forced to rein in spending on labour and capital. Northern Ireland’s long-term economic ambitions are already challenging enough without adding another economic impediment to the equation.”
Max Mackin, owner and recruitment consultant at Reactive Recruitment added: "The major factor that has had an impact on opportunities in the job market recently is the hesitancy across the private sector regarding Brexit.
"A lot of local companies are heavily dependent on the export and import of goods and products. Until they are sure of what the future looks like, they are putting a freeze on recruitment. Investors are also holding off setting up business here due to Brexit uncertainty.
"That said, we should see an upturn in the employment sector immediately after the vote, regardless of what way it goes.”
