Ulster Unionist Economy Spokesperson, Sandra Overend, has backed the call from the Federation of Small Business (FSB) for a review of National Insurance Contributions (NIC) holiday scheme to allow more small firms to take on staff. This is following the release of the latest unemployment statistics which show further increases in unemployment.

The Mid Ulster MLA said:

‘Today the Northern Ireland economy was dealt a blow with the release of the latest labour market figures which show that the unemployment rate is up to 8.2%, now above the UK average; the youth unemployment rate is up to 23.5% which is also above the UK average; and those claiming unemployment related benefits is also up to 63,100. We can’t take these figures lightly as they outline the scale of the challenge facing the Assembly.’

‘Whilst the statistics must of course be looked at in the context of the current recession and Eurozone crisis, the response from the Enterprise Minister Arlene Foster has been unacceptable. Simply encouraging businesses to utilise the support that is already available is not the answer because it is clear that new approaches are needed. Further to that, the Minister set out that the number of employee jobs has increased, however, this is only down to a technical adjustment in how this is measured. Minister Foster also welcomed the reduction of 8,000 economically inactive people but the reality is that many of those people could have moved into the unemployment bracket.’

‘We need action to mitigate the effects of these statistics and for that reason I am backing FSB’s call for a review of NIC Holiday scheme to incentivise more small firms to employ extra staff. FSB research shows that 9 out of 10 unemployed people finding jobs do so through starting up their own business or going to work in one. We therefore need to create an environment where small businesses can flourish and extending the NIC Holiday scheme does that. Invest NI also play an important role and the reintroduction of a dedicated business start-up scheme, which has not been in operation since October last year, must be addressed immediately by the Minister.’