North's jobless benefit claims at new high

JOBLESS BENEFIT queues grew again in Northern Ireland last month to a new high of 56,800 boosted in part by school and college…

JOBLESS BENEFIT queues grew again in Northern Ireland last month to a new high of 56,800 boosted in part by school and college leavers who are finding it difficult to get a job.

Latest labour market statistics show the official claimant count grew by 800 in July, the largest monthly increase in seven months. In contrast Northern Ireland’s unemployment rate fell very slightly over the three months to June to 6.6 per cent.

The latest statistics show the North’s unemployment rate remained comfortably below the UK average rate of 7.8 per cent and the EU rate of 9.6 per between April to June. During this period the total number of people unemployed in Northern Ireland fell by 1,000 to an estimated 55,000. The slight fall in Northern Ireland’s total jobless figure in the second quarter masks the growing gap between the pace of the economic recovery in the UK and the depressed nature of the North’s local economy.

Overall unemployment across the UK fell by a substantial 49,000 people in the three months to June – the biggest fall in jobless figures in three years.

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The total number of people out of work stood at 2.46 million in the UK over the second quarter, while latest official statistics show a further fall last month in the number of people claiming jobless benefits which slowed to 1.46 million.

Arlene Foster, the Minister for Enterprise, Trade and Investment in Northern Ireland said it was clear the North’s labour market had been particularly hard hit by the global recession.

According to one local prominent economist there is a very real danger that the number of people out of work could hit the 70,000 mark over the next 18 months.

Richard Ramsey, chief economist with Ulster Bank, said: “Since the credit crunch officially began back in August 2007, Northern Ireland’s unemployment register has risen by 33,300. “The latest rise in unemployment comes as no surprise and confirms the beginning of a secondary surge in unemployment that we have been flagging for some time,” he said.

Francess McDonnell

Francess McDonnell

Francess McDonnell is a contributor to The Irish Times specialising in business