NI unemployment bucks trend

Northern Ireland is bucking the unemployment trend in the UK as the region reported a record number of people in paid employment at the end of the first quarter.

According to figures from the North's Department of Enterprise, Trade and Investment there were 722,120 employee jobs filled at the end of March.

This contributed to a seasonally adjusted unemployment rate for the period February to April 2008 was 3.9 per cent, a slight decrease from the 4.4 level reported the previous quarter.

The quarterly Northern Ireland unemployment rate remains below the UK average of 5.3 per cent published today and lower than the European Union rate 6.7 per cent for March 2008.

Yesterday the Central Statistics Office reported a 31 per cent annual rise in the numbers signing on the Live Register to over 201,000, brining the rate of unemployment in the Republic to 5.4 per cent in May.

Northern Ireland's Economy Minister Arlene Foster said it was encouraging to jobs growth in the North in the midst of a global economic downturn.

"The private sector in Northern Ireland grew by some 9,000 jobs during the last year, which is particularly welcome."

Data released by the Office for National Statistics today show that the number of unemployed Britons claiming jobless benefits rose for a fourth consecutive month in May in a sign that a slowing economy is taking its toll on the labour market.

That increase brought Britain's unemployment rate to 5.3 per cent from the previous rate of 5.2 per cent.

However, the report gave little indication that rising inflation is translating into higher wages - a key worry for the Bank of England - with earnings growth unexpectedly slowing in the three months to April.

Economists were surprised that average earnings growth came down to 3.8 per cent in the three months to April from 4 per cent. They had expected an increase of 4.1 per cent given the cost of living is on the rise as fuel and food bills soar.

Policymakers have been particularly concerned that high inflation - it hit 3 per cent in April - would encourage workers to demand more pay, setting off an inflationary spiral.

Additional reporting Agencies