Daily Mirror (Northern Ireland)
Pay to rise as jobless level hits record low Concerns over skills shortage
3.2%
WAGES could rise later this year after unemployment in Northern Ireland fell to a record low, it has been revealed.
It stands at just 3.2%, well below the UK average of 4.3% and around half the level recorded in both the European Union and the Republic.
The Northern Ireland Statistics and Research Agency added our jobless rate is below Germany’s, one of the world’s strongest economies, which is slightly higher at around 3.5%.
Richard Ramsey, chief economist in Northern Ireland for Ulster Bank, said as there are more people in work in Northern Ireland and increased competition for labour, wages could start to grow again. He added: “Northern Ireland’s unemployment rate has a joint record low of 3.2% but that’s a figure which needs to be taken with pinch of salt as this gives an overly flattering picture of the labour market.
“Nevertheless, it means 2018 will be the year of skills shortages, bigger pay rises, at least in the private sector.”
Meanwhile, the claimant count – the number of people getting unemployment benefit – also fell by 100 to 3.2%, a level not seen since around late 2008.
The unemployment figure refers to the number of people of working age who are actively looking for work but may paint an overly rosy picture of the jobs market.
That’s because the percentage of economically inactive – those not actively looking for work such as students, carers, those on longterm sick leave or who have taken early retirement – in Northern Ireland is the highest of all UK regions at 27.8%, well above the overall average of 21.2%.
And while the number of people in work may have fallen sharply over the years, there is concern productivity remains stubbornly low. That plays into the idea that while Northern Ireland’s economy may look in good health from a jobs perspective, it’s not growing as fast as would be expected.
Unemployment rate in Northern Ireland while UK average is 4.3%