Recent figures from HMRC indicate that Northern Ireland’s long-standing job growth may have come to a halt, with the number of people on company payrolls remaining stagnant at approximately 819,000 from April to August. This stagnation coincides with a slight increase in the unemployment rate to 2.4% in July, although this remains relatively low historically.
Employers appear to be exercising caution, as evidenced by a reduction in temporary agency workers. The Quarterly Employment Survey revealed a decline in temporary positions during the second quarter of 2026, despite a modest overall increase in employment driven mainly by the health and social care sectors, which added 2,000 jobs.
Conversely, the administrative and support services sector experienced a significant loss of over 1,000 jobs. This trend raises questions about whether it is a temporary cost-cutting measure or an early indication of AI beginning to replace lower-skilled jobs in white-collar sectors.
Additionally, total hours worked across the economy have decreased slightly in the three months leading up to July. This reduction may suggest that employers are attempting to cut costs by limiting overtime, further reflecting the cautious approach businesses are taking in the current economic climate.
Source: BBC News
