North's bad days back as job losses rise

BELFAST BRIEFING:In contrast to other UK regions, over 20,000 people lost their jobs in the North last year, writes FRANCESS McDONNELL

WE ARE on the road back to life as it was before the Belfast Agreement.

Perhaps not on the political front, no thanks to Mrs Robinson, but there is no doubt that when it comes to jobs and the number of people in work, the North has travelled back in time to a bleak and less inspiring place.

The latest predictions suggest that by the middle of this year, there will be fewer people in employment in Northern Ireland than there were 13 years ago.

Last month, the number of people claiming unemployment benefits climbed to a new high of 54,500.

This was in sharp contrast to a general trend across the rest of the UK, where unemployment rates fell.

Northern Ireland was one of only two regions to record a jump in the number of people claiming jobless benefits in December, compared to a decrease across the UK as a whole.

The latest UK government labour statistics show there was an overall drop of more than 15,000 people in the total claimant count, which fell to 1.61 million in December.

This is in comparison to the North, where, during 2009, the number of people applying for jobless benefits increased by 48.5 per cent or 17,800.

By November of last year the number of people registered as “economically inactive” stood at 566,000. That represents a jump of 8,000 over the year.

The economically inactive category includes students, the long-term sick, those looking after family/home and people that are past retirement age and are unlikely to re-engage with the labour market.

While most people on this register are not available for work there are 49,000 people on the register looking for work, which is almost as large as the number officially classified as unemployed.

Total unemployment in the three months to November in the North was estimated to be in the region of 56,000 people.

Unemployment is not a phenomenon unique to Northern Ireland in these times nor is the misery that invariably accompanies it.

But when more than 20,000 people lose their jobs in a small region – which is exactly what happened last year – the impact is like a lightening bolt.

It shakes the very foundations that communities are built on. It also has a devastating impact on families, as charities such as Barnardo’s NI can currently testify to.

According to Barnardo’s, Northern Ireland has the highest youth population and levels of child poverty in Britain.

Experts warn that any further jump in unemployment figures is likely to correspond to a worrying increase in child and youth poverty levels locally.

All the evidence suggests a jump in jobless figures is inevitable, given the economic circumstances.

According to Richard Ramsey, chief economist with Ulster Bank, unemployment could peak at 62,500 later this year. Ramsey said this would bring unemployment levels back to mid-1997 figures.

There are few places that have escaped the curse of job losses in the last 12 months, but the northwest appears to have been hardest hit.

Derry and Strabane have remained consistently at the top of the district council areas which have the highest rates of unemployment.

This situation is not likely to change any time soon, given the continuing unravelling of the local economy and the dire prospects facing many companies in the area.

Workers at German-owned Arntz Belting, which has had a plant in Derry since 1968, are the latest to be faced with the prospect of unemployment.

The plant, which manufactures timing belts, employs 115 people.

Arntz Belting is in discussions with union officials about its workers’ future but is likely to close the factory within the next three months.

All that remains now according to Philip Oakes from the Unite trade union is to “negotiate a good redundancy package” for the workers.