Northern Ireland companies expand staffing amid economic pressures

Northern Ireland’s private sector is maintaining employment growth even as output and new orders decline, according to the latest Ulster Bank Regional Growth Tracker.

Companies are hiring amid inflationary pressures, increased input costs, and evolving market conditions, highlighting HR strategy and workforce planning challenges.

Sebastian Burnside, Chief Economist at Ulster Bank, said: “There were signs of recovery in the Northern Ireland private sector in October as rates of decline in output and new orders eased over the month. In fact, both the manufacturing and services sectors posted renewed expansions in business activity. Meanwhile, companies remained optimistic that output will rise over the coming year.”

“This confidence in part helped firms to maintain hiring activities, despite reduced workloads. Employment rose for the fifth month running, with Northern Ireland the leading light across the UK in terms of job creation,” Bank added.

October data shows that staffing levels increased for the fifth consecutive month, driven by both expected new order inflows and apprenticeship hiring. Manufacturing and services recorded renewed expansions in activity, while construction and retail saw reductions. Higher staffing levels enabled firms to reduce backlogs, even as supplier delivery times lengthened due to Brexit-related paperwork.

The report also highlights wage pressures, with many firms linking rising operating expenses to increased staffing costs. Input price inflation accelerated at the fastest pace in three months, while output charges rose at the highest rate across all UK regions since July 2025.

Explore the full insights on Northern Ireland’s employment trends and workforce strategies by reading the complete story.