THE high level of unemployment was the main drawback to future growth in Northern Ireland, according to a report by the Northern Ireland Economic Research Centre and Oxford Economic Forecasting. It says that the rate in Northern Ireland is likely to remain the highest of any UK region until the impact of a falling birth rate is felt sometime in the next century.

Northern Ireland is the third fastest growing region in the UK, according to the report. It says the region was performing well even before the IRA and Loyalist ceasefires of 1994, and, as a result, renewed violence should not have a dramatic effect on the regional economy.

However, the cancellation of a trade fair for the construction industry, which had been due to be held in Belfast next month, makes it clear that the violence of recent weeks is having a damaging effect, at least in the short term.

Around 200 firms were to have attended the International Building Exhibition, but according to the organisers, the political situation is regarded as too unstable to allow the event to go ahead.

In addition, an international conference on computer security scheduled to take place in Belfast next month has been transferred to the Slieve Russell Hotel in Co Cavan because of delegates fears for their personal safety. COSAC 96 was to have been held in the Stormont Hotel, but the organiser, Mr David Lynas, said he had been inundated with cancellations following the last month's street violence.