Employment: NI has ‘sicker’ workforce than Republic of Ireland

People in Northern Ireland are much more likely to be out of work due to sickness or disability compared to people in the Republic of Ireland, new analysis suggests.

Ulster University Economic Policy Centre (UUEPC) and Dublin City University (DCU) have produced a new dashboard to compare economic data in Northern Ireland and the Republic.

It illustrates how the Republic of Ireland has seen a big reduction in “economic inactivity” over the last decade while Northern Ireland has had little change.

Economic inactivity refers to people who are not in work and not looking for work and includes people who are sick, disabled or have caring responsibilities.

In Northern Ireland the inactivity rate among the 20-64 year old population is 22.5% while in the Republic it is 17.1%.

The reasons for inactivity show a dramatic difference: in Northern Ireland among the 20-64 old population 50% of people who are inactive say it is due to sickness.

In the Republic, sickness is cited by around a third of those who are inactive.

The researchers say that in 2012, economic inactivity in the Republic of Ireland was at a similar or higher rate to that of Northern Ireland.

Since then all regions in the Republic have seen a decline with the Eastern & Midlands region, which includes Dublin, experiencing an 8.5 percentage point fall.

The main reason behind this decline in inactivity in the Republic has been the rising female participation in the labour market.

As Northern Ireland already had a higher rate of female employment, it could not improve in the same way.

Marguerite Shannon, senior economist at UUEPC, said the new dashboard allows for more nuanced economic analysis particularly as it allows comparison between NI and the Republic’s regions.

She added: “The data uncovers some useful insights among demographic groups across the island, how the Republic has managed to tackle economic inactivity in part driven by increasing female participation, and the need for further upskilling and reskilling in Northern Ireland.”