North's unemployment hits 6.3%

Unemployment in the North has hit the 50,000 mark after another 4,000 people joined the dole queues, official figures showed …

Unemployment in the North has hit the 50,000 mark after another 4,000 people joined the dole queues, official figures showed today.

The reduction in the number of people in employment was more than three times the quarterly rise - 14,000.

The number of people actually in employment in the North is now down 51,000 on a year ago - the largest annual drop since the quarterly figures were first issued 17 years ago.

The 50,000 unemployed represented a rate of 6.3 per cent for the quarter to the end of May up from 5.7 per cent in the previous quarter and was 2.2 per cent above that of a year ago.

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In the last 12 months unemployment has increased by 16,000, according to the latest UK Labour Market Survey.

The number claiming unemployment benefits stood at 49,500 in June - up 1,600 on the month and 23,600 on the year.

The number of people in employment in the 2nd quarter of the year was estimated at 744,000 - down 14,000 on the previous quarter and 51,000 on the year. This represented a fall of 1.8 per cent over the quarter and 6.4 per cent over the year.

Meanwhile, provisional seasonally-adjusted estimates from the Index of Production for the first quarter of 2009 showed output from the production industries fell in real terms by 3.4 per cent from the previous quarter and 9 per cent over the year. It was the fourth consecutive quarter in which output fell.

Production output in the engineering and allied trades fell by 7.4 per cent, other manufacturing industries by 4.1 per cent, base metals and fabricated metal products by 5.1 per cent, food and drink by 0.3 per cent and leather and textiles by 2.5 per cent.

Chemicals and chemical products were the only sub-sector to report an increase in output - up 1.4 per cent over the quarter.

Provisional seasonally adjusted estimates from the experimental Index of Services for the first quarter showed the service sector decreased by 0.4 per cent over the quarter and 2.8 per cent over the year.

The quarterly drop was only a third of that across the UK, but the annual figure was about the national 2.2 per cent. It was the seventh consecutive quarter the sector had contracted.

Within the sector it was the first time in which distribution — wholesale and retail — showed an increase in business after six consecutive quarters of decline.

It was also the second quarter in a row that business services and finance showed an increase after five quarters of decline.

Enterprise Minister Arlene Foster said: “Northern Ireland is continuing to experience the negative effect of the global downturn.” She added: “It is some consolation that the Northern Ireland unemployment rate remains below that of the Republic (11.1 per cent), UK (7.6 per cent) and the European Union (8.6 per cent)".

The minister said she was committed to doing whatever was possible to mitigate the effect of the global recession in Northern Ireland and to ensure businesses were well placed to take advantage of the economic recovery when it came.

“There is no doubt that the recession is hitting businesses here but I am convinced that high quality products, a good understanding of markets and targeted support for businesses can still reap dividends, even in these difficult times,” said Mrs Foster.