Unemployment in the North has risen sharply and economic output has dropped, according to the latest economic data released today.
The unemployment figures show the number claiming Jobseeker’s Allowance has increased to 43,900, with an extra 1,900 signing-on last month.
And while unemployment rates have jumped from 4.2 per cent to 5.7 per cent, there has also been a sharp decline in output in both the production and service sectors as demand drops.
The Alliance Party’s enterprise spokesman Sean Neeson said: “This is deeply worrying news which shows how badly Northern Ireland has been affected by the global economic downturn.
“My thoughts are with those who are feeling the worst effects of these tough economic times.” He said the local economy was rocked by regular announcements of large scale redundancies.
Despite the jump in unemployment confirmed today by the Labour Force Survey (LFS), the Department of Enterprise, Trade and Investment (DETI) said the rate compared well with other regions.
The Northern Ireland unemployment rate remained below the UK average rate (6.7 per cent) and was the lowest of the UK regions.
It is also lower considerably lower than the 8.8 per cent rate recorded in the Republic in January this year.
But critics say the Northern Ireland economy has been protected by the comparatively large number of public sector employees.
Enterprise Minister Arlene Foster said: “Following the significant job losses announced in April, particularly in the manufacturing sector, I met with the Employment and Learning Minister, Sir Reg Empey and we have agreed to do all that we can to help businesses and local workers plot their way through this challenging recession.
“We will work together to support our private sector, focussing on the provision of practical support and advice as well as implementing training and re-skilling programmes and assistance.
“Our officials are working closely to explore and identify new measures to help alleviate the current pressures being felt in companies across Northern Ireland.”
The minister said that the wider economic downturn was also having a wider impact on demand, which was hitting local businesses.
“Output in the last quarter of 2008 was down in both the production and service sectors,” said the minister.
“The sharp fall in production sector output was the second successive quarter in which output declined. While the decline in this sector has come later than in the UK as a whole, we are now seeing the effect of reduced demand spreading across the economy.”
She added: “Maintaining competitiveness by controlling costs is important but companies also need to engage existing and potential customers to identify their changing needs, in the current economic climate.”
PA