The latest labour market data provides encouraging news for the North West. More people are in work, payrolled employment continues to grow and Northern Ireland’s labour market remains resilient despite wider economic uncertainty.

For many years, economic debate focused on reducing unemployment and attracting investment. While both remain important, the latest evidence suggests the challenge facing the North West has changed.

The question is no longer simply whether we can create jobs. It is whether we will have enough people to fill them.

Recent analysis presented to the Local Economic Partnership highlights a labour market that has improved significantly over the past decade. Employment has increased, unemployment has fallen and forecasts suggest Derry City and Strabane could create almost 5,000 additional jobs over the next decade, particularly in health and social care, digital industries and professional services.

However, future growth is likely to be constrained by two long-term trends.

The first is economic inactivity. While unemployment has reduced considerably, inactivity has remained stubbornly high. Long-term sickness remains the largest reason people are outside the labour market, while caring responsibilities also continue to affect workforce participation.

The second is demographics. Population projections indicate that Derry City and Strabane is expected to experience a modest decline in population by 2032, while the proportion of older residents continues to grow and the working-age population gradually shrinks.

For employers, this points to a more competitive labour market, increasing pressure on recruitment and a greater need to retain and develop talent.

The latest Northern Ireland labour market figures reinforce this picture. Payrolled employment reached a record 820,800 in June 2026, while the claimant count continued to fall over the year, indicating that the pool of readily available labour is becoming smaller.

This is why investment in skills, higher education, infrastructure and productivity matters. Expanding Magee University, supporting apprenticeships, encouraging innovation and helping more economically inactive people into employment are no longer simply social objectives they are economic necessities.

The North West has demonstrated that it can create jobs. The next phase of growth will depend on ensuring we have the people, skills and productivity to sustain them.