The construction sector in Northern Ireland saw the largest fall in employment across the economy. Even now, over six years since the property crash there are still 30% fewer jobs in the sector than there were in 2008. Many of the jobs in the construction sector would have been mid-level skilled positions that commanded decent wages and formed the backbone of employment in many communities.
Another sector that has lost a significant number of employees since 2008 has been the retail sector. 13% of jobs have been lost in this sector since 2008 and the effects of this can be seen in towns and villages throughout Northern Ireland. Almost all other sectors of the economy in Northern Ireland are back at the level of jobs they had in 2008. However, the regional or geographical spread of employment in the construction and retail sectors was and still is the most balanced of all sectors in Northern Ireland. So while a recovery in other sectors may benefit overall employment, it could remain very unbalanced from a regional perspective. The question for the Northern Ireland economy now is how to make up for the 40,000+ jobs that still need to be recovered, where they will be created and in what sectors.
Northern Ireland is the lowest-wage region of the UK, on almost every measure. While public sector wages in Northern Ireland are on average 2% lower than in the rest of the UK, private sector wages are 26% lower in Northern Ireland. There is a compositional dimension to this as well. Low wages are particularly prevalent in particular industries such as retail, hospitality and social care. Northern Ireland has a higher proportion of jobs in these sectors than the rest of the UK. Policy needs to be focused on recovering skilled and well-paid emplyment through strategic state investment and a long-term industrial strategy.