Northern Ireland’s labour market is showing early signs of a slowdown, even as unemployment hits historic lows, according to new government data released for April.
Figures show that 810,200 people were on payroll last month — a slight dip of 0.1% from March, but still a 1.1% increase compared to April 2024.
Meanwhile, average monthly earnings in Northern Ireland have climbed to £2,427, marking a year-on-year rise of £238 (10.9%). With wage growth outpacing inflation, many workers are now experiencing a welcome rise in real income.
NI Wages Still Behind UK Average
Despite strong pay growth, Northern Ireland’s wages remain below the UK average, where the typical monthly salary reached £2,521 in April. This wage gap continues to highlight regional disparities across the UK workforce.
Unemployment Falls, But Not the Whole Picture
The official unemployment rate in NI has now dropped to a record low of 1.6% for the January to March period — significantly below the UK average of 4.5%.
However, the overall employment rate also declined, now sitting at 71.6%, well below the UK’s 75%. This suggests that while fewer people are officially unemployed, a growing number are simply not participating in the labour market at all.
Economic Inactivity on the Rise
A major challenge for Northern Ireland’s economy is its high rate of economic inactivity — individuals who are not working and not actively seeking work. This group includes students, carers, the disabled, and particularly the long-term sick.
The inactivity rate rose to 27.2% over the past year, far above the UK average of 21.4%. Alarmingly, long-term illness is the leading cause of this trend. In April, 121,000 people were recorded as long-term sick, accounting for 37.9% of all economically inactive individuals — a rise of 9,000 compared to the same time last year.
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