By C. Perera, JadeTimes News
Northern Ireland’s Unemployment Rate Falls Below 2% for the First Time
Northern Ireland has achieved a significant milestone as its unemployment rate has dropped below 2% for the first time, according to official figures. Concurrently, a recent survey by Ulster Bank indicates continued growth in the region’s private sector, which may be outperforming the UK average. The survey, which samples a representative range of local businesses each month, reveals that the private sector in Northern Ireland has been expanding throughout 2024. Notably, new orders surged in July, while inflation showed ongoing signs of moderation.
The latest official data reflect a robust job market, with company payrolls continuing to increase in July. Ulster Bank’s chief economist, Richard Ramsey, noted that the conditions appear favorable for a successful second half of 2024. According to Ramsey, Northern Ireland has experienced the strongest expansion in business activity among all UK regions and nations covered by the report. However, he pointed out sectoral discrepancies, with manufacturing and services showing growth, while retail and construction outputs remained static in July.
In the housing market, an Ulster University survey reports a 2.5% rise in house prices in the second quarter of this year, alongside a 10% increase in transactions compared to the previous quarter. Lead researcher Dr. Michael McCord attributed this momentum to stabilized interest rates, reduced inflation, and a more competitive borrowing environment. Official house price data for the second quarter will be released later this week.
Overall, Northern Ireland’s economic performance has exceeded many economists’ expectations for 2024. The Ulster University Economic Policy Centre recently revised its growth forecast for the year from 0.8% to 1.4%. Additionally, researchers at the National Institute of Economic and Social Research project a significant productivity increase by the end of 2025, despite starting from a low base.
