Increase in Northern Ireland's labour market

UNEMPLOYMENT HAS fallen in the North in the last three months despite current adverse conditions in the world economy, according to the Northern Ireland Economy Minister.

New government statistics show the North's unemployment rate fell to 4.2 per cent for the period covering December 2007 to February 2008. The current unemployment rate is well below the UK average of 5.2 per cent and significantly lower than the EU rate of 6.8 per cent for January.

There are now an estimated 788,000 people at work in Northern Ireland but there are still 23,900 people claiming unemployment-related benefits.

Nigel Dodds, the North's economy minister, said the latest figures painted a positive picture of the labour market. "Employment levels are up over both the quarter and the year and unemployment in Northern Ireland is being maintained below the UK and the EU averages."

However other official statistics released by the North's Department of Enterprise, Trade and Investment also suggest the economy is battling with problems in the service sector.

Latest figures show the service sector in the North has shrunk by 1.5 per cent over the fourth quarter of 2007 - the second successive decline in two quarters.

Industries recording the largest fall-off in business included the distribution, wholesale and retail sector, the business services and finance sector and also the hotels and restaurants sector.

In contrast industries involved in production in the North have reported an increase in business - overall output by companies has grown by 1.3 per cent over the last 12 months.

Mr Dodds said the positive performance of industries involved in production in Northern Ireland was encouraging but he added that the services industries scenario was a sign of the times.

"This is not unexpected given consumer concerns about economic uncertainty," Mr Dodds added. "As with manufacturing, this shouldn't alter our fundamental strategy to be more innovative, be more export orientated and to improve our productivity."