Numbers on dole in North rises again to 52,700

THE NUMBER of people claiming jobless benefits in the North rose for the 18th month in a row during August to a high of 52,700…

THE NUMBER of people claiming jobless benefits in the North rose for the 18th month in a row during August to a high of 52,700.

Latest labour market statistics show there are an estimated 53,000 people currently out of work in Northern Ireland.

Recent economic research has suggested the North’s economy is beginning to recover from the global slowdown and should exit the recession by the end of this year. But the rise in unemployment – the jobless rate rose to 6.7 per cent between May and July – shows no sign of slowing, particularly in some rural areas.

It mirrors a rise in the overall UK unemployment rate, which rose in the three months to July.

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The latest figures show that, over the last 12 months, the total number working in the North has fallen dramatically. It is estimated that in the last quarter there was a fall of 5,000 in employment numbers, bringing to 39,000 the fall in number of people in employment over the year.

An additional 1,600 people signed on for benefits last month.

There has also been a steep rise in the number of people described as “economically inactive”. In the last year the numbers in this category has risen by 35,000 to 582,000.

According to the Department of Enterprise, Trade and Investment, students form one of the largest groups of people classified as economically inactive. About 91,000 students, 83,000 long-term sick and 68,000 people with home and family responsibilities make up the rise in the numbers.

Northern Ireland’s economically inactivity rate now stands at 29.5 per cent, considerably higher than the UK average.

The North’s Economy Minister, Arlene Foster, does not expect employment prospects to improve in the near future.

“The scale of the current recession has been unprecedented in the post-war era and its effect on the Northern Ireland economy has been stark.

“While some recent reports have indicated that the world economy is beginning to stabilise, it is anticipated that the fall-out from the downturn will be with us for some time to come.”

Francess McDonnell

Francess McDonnell

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