New lockdowns could send unemployment to 1990s levels, warns Dodds

By David Young, PA

Unemployment rates could soar to levels not seen in 30 years if further lockdowns are not accompanied by adequate financial support, a Stormont minister has warned.

Economy minister Diane Dodds said people in Northern Ireland faced the prospect of jobless numbers returning to levels not seen since the early 1990s, when the unemployment rate was over 12%.

The current rate is around 3%.

“Any further lockdowns in the local economy and the end of the furlough scheme will see a significant rise in unemployment, we potentially could experience unemployment levels such as we haven’t seen since the early 1990s,” Mrs Dodds told the Assembly.

“That is not a place that I want for Northern Ireland to be, for local communities to be, and I will try in every way possible to support the economy and those people who find themselves in difficult positions.

“That is a terrifying prospect for families and for communities and for individuals.”

Mrs Dodds stressed that people in Northern Ireland were resilient and had been through dreadful circumstances before.

“We will weather the storm of the pandemic,” she said.

The minister was updating the Assembly on plans being drawn up by the executive to support businesses impacted by the latest Covid-19 restrictions in the Derry City and Strabane Council area.

She said the executive would confirm details in the coming days.

“The priority is to devise a scheme that gets targeted financial help to those businesses asked to close in an efficient and streamlined way,” she said.

On the prospect of multiple circuit break lockdowns over the winter, the minister said it was vital the executive worked out the financial implications before pressing ahead.

“I hear speculation that we could require more than one of these so-called circuit breakers,” she said.

“I think before we talk any further on this we should… analyse the impact on the economy, and analyse our ability to pay.”

Mrs Dodds said if there was a UK-wide circuit break then it would be for the UK Government to shoulder the financial impact.

But she added: “If we have regional or sub-regional issues around further restrictions, then I think either we get some additional help from the Exchequer or the Northern Ireland Executive will have to finance some of that themselves.”