In this blog, NERI Co-director Paul Mac Flynn looks at the Report Series no. 13 document that examines the Northern Ireland labour market in 2021.
In terms of both pay and employment we examine the most recent data available along with the most up to date historical trends. Obviously the Covid-19 pandemic continues to exert a significant impact on the labour market and this is felt throughout the data presented here. We also present a separate section examining the labour market supports that were still active in 2021 and how they have impacted across Northern Ireland.
Total employment decreased and unemployment increased in 2021 compared to 2020. However, all of these changes must be viewed in the context of the extraordinary pandemic related disruption and the support system that was put in place to contain it. Nevertheless, when we look at employment and unemployment rates, the story is somewhat more complex, particularly with regard to differences between gender. A similar story emerges with regard to economic activity as well.
Earnings have bounced back in 2021, but still remain weak in terms of their performance since the financial crisis. The Coronavirus Job Retention Scheme or furlough is still impacting those earnings figures throughout 2021. As we look to 2022, we can say that the Northern Ireland labour market stabilised under extreme pressure, but remains vulnerable as we head into yet another uncertain year.