Although Northern Ireland’s labour market has been comparatively robust, it is now showing some signs of cooling as economic pressures persist. While employment levels have risen slightly over the year, both in payrolled employee numbers from HMRC and employee jobs from the QES, these gains have been relatively modest. Furthermore, the Labour Force Survey shows a decline in the employment rate, alongside increases in both unemployment and economic inactivity.
Earnings from HMRC PAYE indicated that Northern Ireland employees had a median monthly pay of £2,406 in November 2025, a decrease of £13 over the month and an increase of £108 over the year. Rising cost-of-living pressures are sharpening employee focus on pay. Employers who cannot keep pace risk losing talent to better paid roles. To stay competitive, thinking creatively and prioritising non-financial strategies for attraction and retention will be crucial.
The latest Northern Ireland seasonally adjusted unemployment rate for the period August to October 2025 was estimated from the Labour Force Survey at 2.4%. This represents an increase of 0.1% over the quarter and an increase of 0.8% over the year. The uptick in unemployment highlights growing pressures on the labour market. The proportion of people in work decreased by 1.1% over the quarter and decreased by 1.6% over the year to 70.7% – further highlighting growing challenges across the market.
It is perhaps unsurprising that the persistent economic uncertainty is impacting employers in Northern Ireland. We are seeing the impact of extensive regulatory reform on employers in Great Britain and with the “Good Jobs” Employment Rights Bill due in 2026 in Northern Ireland we can expect some caution from employers here too. The key takeaway for employers is to plan ahead, ensuring organisational culture is fit for purpose and ready to navigate the changes ahead and compliance measures are firmly in place.
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