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PRIVACY
Economic Development

Proposed redundancies in Northern Ireland soar as economic jitters infiltrate labour market

Number of proposed redundancies so far this year reaches 4,150, double that at the same time last year

The overall jobs market remains strong but the hike in proposed redundancies suggests the near term may be more difficult for employers and employees alike

Northern Ireland companies are getting ready to shed workers at a record rate, according to latest labour market data.

The Department for the Economy said there was a total of 1,960 proposed redundancies in June, the third highest monthly total on record. That follows 610 proposed redundancies in May and brings the total for the year so far to 4,150, more than double that recorded at the same stage last year.

Companies are required to notify the Department for the Economy if they intend to make more than 20 redundancies.

The labour market tends to act as a lagging indicator of economic health and the hike in proposed redundancies is likely to be a reaction to wider economic jitters experienced by companies in recent months. Soaring inflation and accompanying interest rate hikes have dented profit margins and tempered consumer demand, leaving many businesses struggling to break even.

The Labour Relations Agency (LRA) Chief Executive Don Leeson said the data chimes with the organisation’s experience.

“The official statistics confirm what the LRA is experiencing through calls to our Workplace Information Service from both employers and employees worried about redundancy,” he said. “The LRA gets an early warning of such problems as both employers and employees turn to us for advice on what do when redundancies first start to be a consideration.”

Meanwhile, the wider jobs market retained much of its strength, although there were signs of easing.

The unemployment rate stood at 2.5%, a 0.1% increase on the month and 0.1% decrease on the year. The claimant count was 36,700 in June, up 2% on May and 22.8% higher than prior to the Covid-19 pandemic in March 2020.