NISRA’s July labour market release shows a tighter jobs market and fewer redundancies, though hours worked are down on last year
Northern Ireland’s unemployment rate fell to 1.8% in the March-May 2026 quarter, down 0.4 percentage points on the previous quarter and 0.2pps on the year, according to the latest labour market statistics published by NISRA on 21 July.
The employment rate for 16 to 64 year olds rose to 72.1%, up 0.8pps on the quarter, with 901,000 people in work, an increase of 12,000 on the previous quarter. Economic inactivity dropped 0.5pps over the quarter to 26.5%, though it’s still up slightly (0.1pps) on the year.
Pay packets grew too. Median monthly pay through HMRC PAYE reached £2,480 in June 2026, up £115 (4.9%) on the year. Payrolled employee numbers stood at 820,800, unchanged over the month but 1.4% higher than a year ago.
Not every measure moved in the right direction. Total weekly hours worked came in at 29.5 million, up 3.1% on the previous quarter but down 2.3% on the same period last year, suggesting some of the employment gains have come with shorter hours rather than more of them. The claimant count held relatively steady at 33,800 (3.3% of the workforce) in June, down 1.8% on the month, though it remains 13% above pre-pandemic levels from March 2020.
Redundancies eased significantly. NISRA recorded 60 redundancies in June, taking the annual total to 1,670, down more than 23% on the previous year’s 2,170. Proposed redundancies over the twelve months to June also fell, to 2,860 from 3,030, a drop of more than 5%.
NISRA’s own commentary flags a divergence worth noting: the PAYE payroll data points to rising employment over the year, but the Labour Force Survey shows no statistically significant change in employment, unemployment or inactivity over the same period. The two data sources are telling slightly different stories, and it’s the survey-based figures that carry the official unemployment rate.
The next labour market report is due from NISRA on 18 August 2026.
Source: Department for the Economy / NISRA