Why is economic inactivity so persistent in Northern Ireland?

Economic inactivity has historically been higher in Northern Ireland than in the rest of the UK. Policies to address inactivity have long been in place, but there is a lack of understanding of the specific barriers facing people that lead them to be neither in employment nor actively seeking work.

Over a quarter of people aged 16-64 in Northern Ireland are economically inactive – neither in employment nor actively seeking work– according to data from the Office for National Statistics (ONS) for the autumn of 2025. This challenge is replicated across the UK, but it is particularly acute in Northern Ireland.

Following the Covid-19 pandemic, academics and political commentators have debated whether the rise in economic inactivity may reflect, in part, a shift in people’s thinking as a result of which they are no longer prepared to sacrifice their time for jobs that bring little pay or satisfaction.

The media too have talked of ‘quiet quitting’ and attendant euphemisms for similar shifts where workers’ efforts are seen to have diminished. Subsequently, on the back of the job furlough schemes introduced during the pandemic, there have been calls for a universal basic income.

These expressions are pertinent for all nations in the UK experiencing low economic activity, but especially so to Northern Ireland, which has historically maintained the highest rate of economic inactivity in the UK (marked in particular by high rates of sickness/disability).

Five years on from the pandemic, this article reflects on what is happening with economic activity in Northern Ireland since the pandemic, following on from two earlier Economics Observatory articles – one in 2022 during the pandemic and another in the aftermath in 2024.

What does economic inactivity in Northern Ireland currently look like?

The rate of economic inactivity in Northern Ireland was 26.4% in September-November 2025, according to the most recent ONS figures. This compares with 22.3% in Scotland, 24.5% in Wales and 20.3% in England.

Even accounting for variation within England, Northern Ireland still has the highest rate of inactivity in the UK. By comparison, the rate in the North East – the highest among English regions – was slightly lower, at 26.0%, in the same period.

Beyond these headline figures, it is worth looking at the reasons why individuals are economically inactive (see Figure 1). Northern Ireland has both higher shares of students (usually seen as a positive form of inactivity) and of sickness/disability (not seen as so positive). While the figures below are for 2021/22, this pattern has existed for some time (Devlin et al, 2023).

Figure 1: Economic inactivity by reason, 16-64 years

Source: ONS, author’s calculations; data for July 2021 to June 2022.
Notes: Proportion of those inactive by reason.

What barriers do people face?

To gain a deeper understanding of why people are economically inactive, a recent study commissioned by the Department for the Economy examined the lived experiences of individuals who are out of work. It also gathered insights from organisations that represent key groups, such as women, carers and people with disabilities.

The conversations reveal a complex interplay of personal, economic and institutional barriers that prevent people from working.

The social security system

One of the strongest themes to emerge from the study is the role of the social security system in shaping decisions about entering work. Many find the system difficult to navigate, are anxious about losing entitlements and fear that if a job didn’t work out, re‑establishing supports would take time and leave them without income. One participant in the study commented:

‘I think maybe that might be something, that if there was a greater ease of trialling things, coming off your benefit, but that you could go back on it quickly that if it didn't work out that the people don't have that fear of like, “Okay, well I'll go and do that job but what if I hate it and it will take me weeks to get my claim back? So, what happens in between time?” So, maybe, if there was some sort of way of people testing the water to go back to work…’.

This lack of flexibility in the social security system was mentioned by numerous respondents, regardless of what form of inactivity was being discussed. The social security system being hard to navigate and undignified for applicants is also found in other recent research (Carer Poverty Commission NI, 2023).

Poor health

The impact of poor health on individuals’ ability to join the labour force is also a common theme in the study. Many people stated that with appropriate support, they would feel able to work, but that long waiting lists and gaps in mental health provision made this unattainable. For example:

‘I don’t necessarily need to be outside the system entirely. If I were able to access the kind of help that I… need for my mental health… then I would be able to re-enter the workforce.’

This is particularly important in the context of Northern Ireland where mental ill health is so prevalent – around 25% more than the UK average. This is attributed, at least to some degree, to the Northern Ireland conflict and to higher levels of deprivation (Northern Ireland Audit Office, 2023). Indeed, recent work finds that poor mental health, and to a lesser extent some physical health conditions, are more prevalent among those exposed to the conflict (Devlin et al, 2025).

The interviews reveal how poor mental health, combined with limited service provision, creates a cycle that reinforces economic inactivity. Without timely access to necessary support, many find it extremely difficult to sustain or even consider employment.

Disability

Organisations supporting people with disabilities emphasise the challenges that this group faces – not only in accessing work, but also remaining in employment. It is worth noting that Northern Ireland has the highest disability employment gap in the UK – at 42 percentage points in 2020, compared with 28 percentage points for the UK as a whole (Northern Ireland Statistics and Research Agency, NISRA, 2023).

Interviewees consistently highlighted that many of the accommodations needed to support people with disabilities are modest but, if available, they could transform individuals’ ability to work. Indeed, one respondent noted their experience at university and the impact that similar support and flexibility could have:

‘…pretty basic physical disability stuff which we got in uni – you know like accessibility supports but also flexibility… then I would be able to re-enter the workforce.’

What’s more, some disability representatives felt that employer efforts are superficial, often amounting to box-ticking, even despite recent improvements focused on supporting people with disabilities through recruitment processes. Specifically, while some organisations have begun to improve recruitment processes, workplace cultures and daily practices have often not kept pace.

In addition, employers frequently assume that hiring people with disabilities would be costly or time consuming – assumptions rarely grounded in evidence. But this changed somewhat following the pandemic, when demand for workers was high. One respondent who supported people with disabilities into and then in employment felt that firms that hadn’t previously been interested in engaging with their programme now saw it as a way to address their recruitment difficulties.

‘They would have definitely just closed the door in our faces. Covid opened that wide up, because employers were like, “Hold on a second, we can't get bums on seats here, let's give this person a go.” So it definitely had a positive impact.’

The study followed up with this respondent on why they thought that employers had initially been reluctant to engage with their programme. They reported:

‘Automatically, they think, “This is going to cost me time and money.” And they're like, “We don't have extra time and money.” But the way we try and build it in is, “Give them a trial, you can see that this person can work as well as the next.” So I think it definitely is fear, and they're afraid to say something or do something wrong.’

Women

Women described a labour market that is characterised by low-paid, insecure jobs that offer little flexibility and no guarantees of financial gain. Research highlights that women who leave work for care-giving are often funnelled into roles that do not match their skills or qualifications, reinforcing financial and emotional vulnerabilities (Harding et al, 2024).

Women’s organisations in the study emphasised the significant impact of childcare and broader caring responsibilities. Many women juggle caring for children, elderly parents and sometimes partners with health needs, creating compounding caring responsibilities that make work difficult or impossible.

One interviewee, who had worked full-time in a job that she enjoyed prior to having children, reported being out of the labour market for about 20 years. She struggled with working after having her first child but had support from her mother for childcare. By the time her second child was born, her father had become unwell and her mother was unable to care for two children. As a result, the family would have had to use formal childcare, but the cost was prohibitive and the youngest child’s health issues meant that the mother needed to be around. This woman also supported her self-employed partner, and later cared for her mother and her aunt who was elderly.

Such instances of multiple and evolving caring roles are not unique. These situations can also result in individuals being unable to engage in training or support programmes that are available.

The case described above is also an example of where women who are currently economically inactive feel that they would have to return to work for financial reasons. This individual also highlighted concerns about the kind of work that she might find, and the need for further learning and training, given a lack of qualifications. She was open to learning through local community groups and recognised the opportunities for gaining skills and qualifications that can be found online.

One study of the barriers that women face finds childcare to be a problem that limits the jobs for which women with caring responsibilities could apply. It also highlights concerns around after-school provision and childcare during school holidays (Harding et al, 2024).

Family support can be a crucial factor. For some individuals, not having family nearby can present a barrier to work, often because formal childcare can be prohibitively expensive. One woman in the study stated that there was little point in working as the cost of childcare would offset any additional income.

Women’s centres emerge as invaluable support hubs, particularly in some deprived urban areas. In particular, these centres offer specific courses – for example, in mathematics or English – as well as more holistic support, such as confidence building or help with interview technique.

One study shows that as women’s centres are embedded within communities, they are best placed and trusted to respond to skills needs and the broader challenges that women can face when accessing the labour market, which are often overlooked in policy design (Harding et al, 2024).

For example, classes are scheduled to allow mothers to drop children to school and back-up childcare is provided to enable participation or interview attendance.

Research highlights that the reasons why women are inactive are often complex and nuanced (Harding, 2024). Stories that show complexity around care, health, confidence and personal relationships emphasise the need for policy solutions that recognise the multi-layered and non-linear employment pathways taken by those with responsibilities outside the labour market.

Family dynamics

Interviewees also highlighted how family members can influence employment decisions. In some cases, relatives act as protective gatekeepers. Some people with disabilities are perhaps being held back by family members concerned about whether they would be able to do certain jobs, how would they get there or their safety in a new role. Others who are inactive had started to undertake important roles in the family or home:

‘I've worked with families before where maybe a dad has acquired an injury and wanted to return to work, but then the wife… was like, “Well, if you go back to work, who's going to look after the kids?”’

While rooted in care and concern, such dynamics can unintentionally reinforce economic inactivity, especially for people with disabilities or long-term health conditions. This is also evident among young adults with special educational needs (SEN) or who have other additional needs, some of whom undertake work at family businesses or childcare responsibilities.

Community background

Despite significant changes since the signing of the Good Friday Agreement in 1998 – which ended 30 years of conflict – religion and community background continue to shape the landscape in Northern Ireland. Educational and residential segregation have an important role to play in maintaining this division.

Research demonstrates that due to the region’s longstanding segregation, individuals often evaluate job opportunities with reference to the religious identity of the area or organisation (Green et al, 2005). This is also highlighted in the recent qualitative analysis. One participant stated:

‘I suppose sometimes religion can come into it… that there are businesses and organisations, I'm not sure up the country, I can't really comment but I suppose rural, you, sort of, have to err on the side of caution of family dynamics that way as well, or you can get phone calls from parents saying, “Absolutely under no circumstances are they working for them because they're from a certain religion so they wouldn't understand X, Y and Z”.’

This shows the role of community background alongside the family dynamics discussed above, which may result in an inactive person, who otherwise might be open to certain opportunities, staying out of the workforce.

Leaving inactivity

On the other hand, there were some instances of people becoming active, particularly older people. Support services had seen an increasing number of older people returning to employment – that is, people leaving economic inactivity – in response to the cost of living crisis. Previously, many older individuals had used social security as a bridge to retirement. Now, with rising living costs, this is no longer feasible.

‘I suppose cost of living and everything, they're just saying, you know, “We can't survive on the benefits so we have to look at other options”.’

This shift is concerning at a time of rapid change in the labour market, with the rise in hybrid working and the changing role of technology in the workplace, particularly as a result of artificial intelligence, it will be increasingly difficult for those who have been out of the labour market to keep pace with changes.

Conclusions

The key takeaway from these qualitative studies is that people’s lives can be complicated, which makes designing interventions and policy to reduce inactivity tricky. Economic inactivity in Northern Ireland is affected by a web of interconnected barriers, not isolated problems. People face layered challenges – health issues, inflexible social security rules, caring responsibilities, financial pressures, workplace culture barriers, transport limitations and, in some cases, the legacy of conflict or community background.

Nevertheless, there are some clear policy implications. First, making childcare more affordable is crucial, but flexibility and accessibility are important too, particularly where families are not made up of two parents working 9am to 5pm. This includes thinking about wrap-around school supports and holiday provision.

Second, there is a clear need for the social security system to be more adaptable to ensure that those who want to work are not put off trying a new job or opportunity.

Third, sustained improvements in outcomes for people with disabilities are vital. This is happening in companies and in policy, but it must continue to be mainstreamed and applied beyond box-ticking exercises. Changes to culture are key here. Improved access to mental health services is also crucial in Northern Ireland. Currently, despite the higher prevalence of mental ill health, spending is significantly lower per capita in Northern Ireland than in the rest of the UK.

Support for carers and older workers, with flexible work options, is also required. In addition, training is important for those who have been out of the labour market for some time – this applies to both hard skills, such as information technology, as well as soft skills and initiatives to improve confidence.

People’s lives are complex and how they engage with the labour market is varied. Policy must be responsive to this complexity and to the specific context of Northern Ireland. It can also benefit from examples of where support is working, such as in women’s centres and disability organisations.

As labour markets remain tight in the post-pandemic era and growth is being squeezed, getting people into the workforce is a government priority. While some of the findings here are specific to Northern Ireland, particularly around the conflict and segregation, others are applicable across the UK and other developed economies.

Where can I find out more?

Ulster University’s Labour Market Intelligence Portal provides up-to-date data on the health of the Northern Ireland economy.
The research discussed here on behalf of the Department for the Economy can be found here.
Carers NI and the women’s regional consortium published a report on Women, unpaid caring and employment in Northern Ireland, which explores the barriers those with caring responsibilities faced in accessing the labour market.