Labour Market Report March 2021

The latest Labour Force Survey (LFS) estimates relate to November-January 2021 and indicate that, over the quarter, the employment and unemployment rates decreased, and the economic inactivity rate increased.

• The number of people on the NI claimant count (experimental) increased over the month to 58,900 in February 2021. This is the first monthly increase since the peak in May 2020. The experimental Claimant Count includes Jobseeker’s Allowance Claimants and those claimants of Universal Credit who were claiming principally for the reason of being unemployed.
• From 1^st March 2020 to 28^th February 2021, 10,650 redundancies were proposed, more than double the previous 12 months. The department was notified of 420 confirmed redundancies in February 2021, taking the annual total to 5,770.
• The number of employees receiving pay through HMRC PAYE in NI in January 2021 was 744,300, an increase of 0.2% over the month and a decrease of 0.9% over the year. The flash estimate for February 2021 shows a further increase of 0.2% on January’s figure to 746,100.
• Earnings from the HMRC PAYE indicated that NI employees had a median monthly pay of £1,775 in January 2021, a decrease of 0.7% over the month and an increase of 4.8% over the year. The flash estimate for February 2021 shows a further 0.5% decrease in earnings from January’s figure.
• The NI unemployment rate (16+) decreased over the quarter (0.1pps) and increased over the year (1.3pps) to 3.7% in November-January 2021. The annual change was statistically significant and is likely to reflect real change. The NI unemployment rate was below the UK rate (5.0%).
• The proportion of people aged 16 to 64 in work (the employment rate) decreased over the quarter (1.3pps) and the year (3.0pps) to 69.3%. The annual change was statistically significant and is likely to reflect real change. The latest employment rate recorded for the whole of the UK was 75.0%.
• The NI economic inactivity rate (the proportion of people aged from 16 to 64 who were not working and not seeking or available to work) increased over the quarter (1.5pps) and the year (2.1pps) to 28.0%. The economic inactivity rate was similar to rates over the last ten years but significantly below peak rates in 2009. The NI economic inactivity rate remained above the UK rate (21.0%).
• Businesses reported that employee jobs decreased over both the quarter and the year to 770,900 jobs in December 2020. This marked the third consecutive quarter of decline in employee jobs. The quarterly decline in December 2020 was driven by decreases within the services, construction and other industry sectors. The annual decrease was the second consecutive annual decline since September 2012, and was driven by decreases in the services (-9,870 jobs) and manufacturing (-830 jobs) sectors.
• The statistical bulletin and associated tables are available on the Labour Market Report - March 2021 page

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