Northern Ireland’s job market has continued to defy the odds and is nearly back to its pre-pandemic heyday.
That is the thrust of the latest jobs market report from the Department for the Economy which showed the unemployment rate stood at 2.5% of the working age population, just 0.1% above the level it reached in the first quarter of 2020. Meanwhile, the total number of pay rolled employee numbers have continued to climb while earnings have increased and the economic activity rate has also fallen.
The strength of the job market continues to surprise commentators who had expected companies to reduce their hiring levels in light of recent inflationary pressures and growing concerns around the health of the wider economy.
The data backs last week’s PMI report from Ulster Bank which showed an increase in staffing levels from employers. In it, Richard Ramsey, Chief Economist at Ulster Bank, said higher wages don’t seem to have put off employers.
“Despite robust rates of wage inflation, all sectors continued to increase their staffing levels in April,” he said. “Retailers led the way in the recruitment drive, but construction firms posted a record rise in staffing levels.
“This would appear to suggest the softer demand in the sector is enabling longstanding vacancies to finally be filled.”
Even the economic inactivity rate, one which has remained stubbornly high for Northern Ireland and well above other regions of the UK, fell in the first quarter of the year by 1.4% compared to the same time last year.
While the data will be encouraging, caution is advised. The labour market’s historical tag as a lagging indicator of economic health could mean that current jitters around economic health aren’t being reflected in the figures.
