Ministers Target 'Economic Inactivity'

Employment and Learning Minister Dr Stephen Farry and Enterprise and Investment Minister Arlene Foster have pledged to target "economic inactivity" in Northern Ireland.

The move follows a report seeking to develop and implement a strategy to reduce economic inactivity through skills, training, incentives and job creation.

Economic inactivity refers to people out of work as a result of family commitments, mental and physical health, retirement or injury.

Northern Ireland has the highest rate for economic inactivity of any region of the UK.

Minister Farry said: "Unemployment has traditionally dominated the debate on the local labour market. While the current unemployment rate of 8.5% in Northern Ireland is higher than the UK average of 7.8%, the current disparity in the employment rate, which stands at 66.3% compared to the UK average of 71.5%, can only be explained by Northern Ireland’s higher rate of economic inactivity, which is currently 27.4% of the working age population.

"The research suggests that the key focus of the economic inactivity strategy should be on increasing economic participation by assisting individuals with family commitments, health conditions or disabilities to move into work."

Minister Foster added: "The Northern Ireland Economic Strategy recognises the incidence of economic inactivity in NI is significantly above the levels recorded in other parts of the UK. This long standing problem, coupled with the impact of the Coalition Government’s Welfare Reform Programme, underscores the need for the Executive to take action to support those re-engaging with the labour market.

"Reducing economic inactivity will mean increasing economic independence and tackling social exclusion through ensuring that people who can work are given the best possible opportunity to prepare for, find and stay in, work."

The report found that in Northern Ireland, students are the largest single group, accounting for 31%.

Northern Ireland has a higher proportion of students as part of its inactive working age population than any other region of the UK.

It also found Northern Ireland has a higher proportion classified as inactive due to long-term sickness or disability.

The long-term sick and disabled category dominated the older age groups, while within the family commitments category, lone parents were identified as a group in particular need of support.

Only 18% of those classified as inactive want to work, while over 40% of those within the target groups have no qualifications.

(IT/CD)