Mixed signals in Northern Ireland labour market- employment declines but wages show resilience

The latest Labour Market Report for NI was published this morning, and it paints a mixed picture. The decrease in the number of employees receiving pay through HMRC PAYE in December 2024 (a 0.3% drop) is concerning, especially since it marks the largest decrease since August 2020. This could be a signal of slowing employment growth or seasonal fluctuations. On the other hand, the 0.1% increase in median monthly pay from the previous month and the impressive 6.5% increase over the year suggests some resilience in wages, even as the overall number of payees declines. The wage growth could point to employers needing to offer higher wages to attract or retain workers in certain sectors. 

However, the ongoing issue of economic inactivity in Northern Ireland remains a key concern. The fact that economic inactivity is higher than the UK average and has risen further by 0.4 percentage points to 26.1% over the past year highlights the challenge for the region's economic growth.  To better understand the full context, please see the link: Labour Market Report – January 2025 | Northern Ireland Statistics and Research Agency

If you need any employment advice and support, feel free to contact Marie-Claire Logue at Turley Legal