Northern Ireland job market starting to weaken, data suggests

The percentage of the workforce on unemployment benefits increased to 3.9%, the highest rate since March 2022

The Northern Ireland jobs market may have begun to weaken in April, official data suggests.

HMRC figures show the number of people on company payrolls fell by 0.6% to just under 786,000.

The percentage of the workforce on unemployment benefits, known as the claimant count, increased to 3.9%, the highest rate since March 2022.

NI's job market has had a sustained period of recovery since the pandemic and has largely made up lost ground.

For example the employment rate, which measures the percentage of working age adults in a job, was 72% in the first quarter of this year compared to a pre-pandemic peak of 72.4%.

Business surveys suggest that many companies have struggled to recruit sufficient staff.

Prices rise, wages fall

However, some economists are expecting the labour market to weaken during this year as continued high inflation and rising interest rates hits demand in some parts of the economy.

Meanwhile, HMRC data suggests typically monthly pay in Northern Ireland was 6.6% higher in April compared to the same period month last year.

However, with prices rising by about 10% the typical worker will still have seen the real value of their wages falling.

Since March 2020, earnings in Northern Ireland have increased by 18.3%, 2.7 percentage points lower than the average UK increase (21%) and lowest of all the UK regions.