NORTHERN IRELAND - Employment
Although agriculture remains a major part of the economy compared to the rest of the UK, employment in the sector has declined. Farms are mostly small and owned rather than rented, and as such employment opportunities are largely confined to the owners and their families. Employment in food processing remains important, reflecting the rural character of the region.
Manufacturing employment has decreased by 13 per cent between 1998 and 2003, while service sector employment has expanded by 20 per cent over the same period. The wholesale and retail trade sector accounts for the greatest proportion of employee jobs (17 per cent). The public sector remains the most important employer of labour in the region, employing around 32 per cent of employees, which contributes to the high quality of services such as health and education in the region. Total employment (employees plus self-employed) has increased by some 34,000 (5 per cent) between 1998 and 2003 to 720,000.
Economic activity rates for those of working age are lower in Northern Ireland than in the United Kingdom (72 per cent and 79 per cent respectively). Similarly, compared to the United Kingdom as a whole, Northern Ireland has very different activity rates for males and females. In 2003, 80.3 per cent of the male working age population were economically active, compared with 63.4 per cent of the female working age population.
Above national average unemployment rates
In 2003, the unemployment rate in Northern Ireland (5.3 per cent) was slightly higher than the UK average (5.0 per cent), although generally speaking, national trends in unemployment are reflected in the region. Despite the general trend of high outward migration, the population of working age has been increasing and this, coupled with increasing participation rates by females, has resulted in an increasing labour supply.
The west of the region has suffered higher unemployment rates, concentrated particularly in Londonderry and other smaller urban centres such as Strabane. Although the east of the region has generally lower rates of unemployment, the pattern is by no means uniform: there are pockets of high unemployment such as west Belfast, while, conversely, the west contains areas of below average unemployment such as Enniskillen.
The relative shortage of employment opportunities results in high levels of long-term unemployment: in 2003, 43 per cent of the unemployed were out of work for more than one year. However, a regular declining trend can be observed since the beginning of the 1990's.
The female unemployment rate (3.4 per cent in 2003) is considerably lower than the male unemployment rate (8.1 per cent in 2003). However, overall female participation in the labour force is also generally lower.
Labour costs
Total labour costs per hour are £13.09 in Northern Ireland compared to £14.18 in the UK as a whole, ranked 6th (lowest to highest) out of the 12 UK regions. However, Northern Ireland has a total labour cost per employee of £19,603 (the third lowest ranking of the regions), reflecting the lower hours worked in Northern Ireland. Northern Ireland labour costs are generally lower than the equivalent UK averages for all industry groups with the exception of financial intermediation, real estate, renting and business activities, health and social work, and community and personal services.
Average gross weekly earnings lowest in the UK
Average gross weekly earnings in the region are the lowest in the UK, with a gross average weekly earnings for full-time males of £437.70 in 2003 (83 per cent of the GB average) and £355.20 for females (90 per cent of the GB average). In the region in 2003 average gross weekly earnings for full-time employees ranged from £658.30 for males working in the financial intermediation sector to £217.80 for females in the hotels and restaurants sector. Among males, the agricultural sector was the lowest paid.
With the lowest earnings levels for those in employment, and a rather high unemployment level compared to other regions, Northern Ireland has the lowest average gross weekly household income in the UK (£429 per week in Northern Ireland, compared with £547 in the UK as a whole).
Wages and salaries constitute the major component of household income in both Northern Ireland and the UK (63 per cent and 69 per cent respectively). However, social security benefits constitute 21 per cent of average gross weekly household income in Northern Ireland, compared with only 12 per cent in the UK. The progressive effect of the tax system means that while average gross weekly household income in the region is only 78 per cent of the UK average, the average weekly disposable household income of £365 is 82 per cent of the UK average, although mean household size is greater in Northern Ireland.
Consumers' expenditure in the region shows many trends in common with other UK regions. However, the main distinguishing feature is the higher level of spending on non-housing essentials (food and non-alcoholic beverages, and clothing and footwear) which constitute 20 per cent of total weekly expenditure, compared with 16 per cent in the rest of the UK. Whilst similar proportions of average weekly expenditure are spent on housing, water and electricity in both Northern Ireland and the UK, traditionally expenditure on housing is lower than in the rest of the UK.
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