Northern Ireland's jobless total fell by 1,000 to 43,000 in the final quarter of last year, according to data released yesterday. The figures show that the North's unemployment rate has slipped from 5.6 per cent to 5.5 per cent, following a similar decline in the previous quarter.
The latest fall came as the number of people claiming unemployment benefit in the UK dropped to a new 27-year low. The UK's statistical agency said 928,500 people were on the "dole" last month, a bigger than expected fall of 3,500 on the month.
That is equivalent to just 3.1 per cent of the workforce and emphasises that the country's labour market, for now at least, is proving resilient to the growing gloom surrounding the economy.
The Bank of England warned yesterday that the threat of war with Iraq had clouded the outlook for the economy as it cut its growth projection for the next two years.
Less than a week after it stunned markets by chopping its benchmark interest rate to a 48-year low of 3.75 per cent, the bank defended its decision by saying that it believed pre-emptive action was necessary given the prospect of a weaker economy.
Mr Eugene Kiernan, head of asset allocation at Irish Life Investment Managers, said the bank's "flexible approach" suggested it could be prepared to cut rates again soon.
In its quarterly Inflation Report, the Bank of England, forecast that growth would inch up to about 2.5 per cent this year before falling back to about 2 per cent in 2004. The forecast came in about half a point weaker than a November profile but remained near trend.
