Increase in Unemployment Rate and Deceleration of Wage Growth
The typical monthly pay in Northern Ireland in June 2021 was £2,344, down by £28 from May, but still showing an upward trend from last year. However, this also suggests Northern Ireland was the lowest-earning region amongst the 12 UK regions in June. The pool of employees on company payrolls took a slight dip last month, constituting 809,200, even though overall it was higher than the same period in the previous year. The employment rate for the same quarter was noted to have risen to 72.1%, though this figure is still low compared to the corresponding time last year. Interestingly, the report presented an improved economic inactivity rate, adjusting to 26.3% over the quarter. The number of people not seeking work due to long-term sickness forms the major chunk of this rate, contributing 39.3%.
Chief Executive of the Labour Relations Agency, Mark McAllister highlighted the challenging economic conditions. He stressed on the compounding effect of the flaring inflation and the looming uncertainty of pay negotiations and disputes. Addressing concerns from both ends, he highlighted the issues of rising living costs for employees and expensive business costs for employers.
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