The unemployment rate in Northern Ireland has fallen to a record low of 2% between March and May 2024. The average monthly wage increased by 11% over the year, according to official government figures. The July labour market report from the NI Statistics and Research Agency (NISRA) estimates that the unemployment rate dropped by 0.2 percentage points (PPS) over the previous quarter.
The UK unemployment rate for the same period was estimated to be 4.4%. NISRA’s Labour Force Survey (LFS), which is based on household interviews, suggests that the headline employment rate in the north dropped by 0.6 PPS over the same period to 71.1%. It remained 0.3 PPS up over the year.
The economic inactivity rate also increased in the three months to May, rising by 0.8 PPS to 27.4%. This was marginally (0.1 PPS) down over the year. Figures from HMRC indicate that the number of PAYE (pay as you earn) workers in Northern Ireland increased to a record 808,000 in June 2024.
This marked a monthly increase of 0.4%, making the PAYE workforce 2.4% larger compared to June 2023. Earnings for these workers suggest that Northern Ireland employees enjoyed a median monthly pay of £2,329 in June.
Northern Ireland jobless rate hits low
This is an increase of £83 (3.7%) over the month and £235 (11.2%) over the year, well above the UK’s 2% inflation rate in June. The north’s claimant count stood at 38,800 last month, equivalent to 4% of the workforce. This marked a 3.1% increase from May.
The Department for the Economy recorded 310 confirmed redundancies during June 2024. This is an increase from 180 in May and the highest monthly figure since November 2023. The total number of confirmed redundancies reached 930 since the start of the year.
There were 1,750 proposed redundancies during the same period, including 390 in June. These figures only include cases where employers are obliged to notify the authorities when cutting 20 or more roles. The labour market data was published following a meeting between the UK’s new Chancellor Rachel Reeve and Northern Ireland’s First Minister Michelle O’Neill, Deputy First Minister Emma Little-Pengelly, and Finance Minister Caoimhe Archibald.
Ms. Archibald stated, “I did express concerns about our overall finances and the need for additional funding for public sector pay awards, including to meet pay review body recommendations. While good progress has been made in relation to the fiscal framework, work must continue as a priority and our finances must be put on a sustainable footing.”
