Northern Ireland Businesses Experience Decline in Employment Amid Tough Economic Conditions

One of the most influential indicators of Northern Ireland’s economic health has shown businesses in the region are shedding staff while operating in a challenging environment

Ulster Bank PMI Results

The widely-watched Ulster Bank Purchasing Managers Index (PMI) recorded in a drop in business activity last month and the first fall in unemployment for the first time in four years. Respondents to the survey said the latter move was intended to help companies reduce overheads, while there was also a slide in output and new orders.

Challenging Period for Private Sector

The headline Business Activity Index posted 44.9 in February, below the 50.0 no-change mark for the third month running. Sebastian Burnside, NatWest Chief Economist, commented on the situation, highlighting the reduction in employment and the challenges faced by the private sector.

Signs of Economic Weakness

The survey indicated weakness in the construction, retail, and services categories, with some positive outlook from the manufacturing sector. Business confidence improved in February despite the overall difficult scenario.

Workforce Reduction and Economic Indicators

Businesses in Northern Ireland saw a decline in staffing levels, with the fall in workforce numbers being one of the weakest among the monitored UK regions. The data also pointed to reductions in new orders and increased input costs, impacting selling prices.