Economic vision progress lags

Progress under the Department for the Economy’s (DfE) economic vision lags as the ‘good jobs’ rate of 69 per cent in 2025 is below the peak of 70.9 per cent in 2022, productivity levels remain “relatively weak”, and there is “much ground to cover” to meet decarbonisation goals, a report shows.

Delivering The Economic Vision: Year Two Progress Report, published by DfE in January 2026, shows that the good jobs rate increased from 67.4 per cent in 2024 to 69 per cent in 2025, but remains below the 2022 peak.

DfE defines good jobs as secure, adequately remunerated roles that support health, wellbeing, and economic participation. The progress report states that Economy Minister Caoimhe Archibald MLA introduced proposals for the Good Jobs Employment Rights Bill in April 2025. It is designed to modernise the employment law framework, enhance job quality, and ensure fairness in the labour market.

The bill includes proposals to end zero-hours contracts, enhance protections for agency workers, ban ‘fire and rehire’ practices, modernise the trade union framework, and make flexible working more accessible.

Additionally, proposals include a strengthening of family-related rights and an introduction of carer’s leave alongside neonatal leave and pay. The Department is currently working with the Office of Legislative Council to draft the bill.
DfE launched the Apprenticeship Action Plan in August 2025. It aims to increase the pipeline of talent for business and help more people access apprenticeship opportunities.

To address priority skills gaps, the Skills Fund was launched in 2024/25 with £12 million allocated in year one and £9 million allocated in year two. DfE also expanded its Assured Skills programme which is aimed at “delivering targeted training to meet employer demand and create good jobs”.

Productivity

The report describes productivity levels as “relatively weak”, noting that Northern Ireland’s economic inactivity rate remains the highest across both the island of Ireland and the UK. ONS data shows that the region’s productivity gap with the UK stood at 11.9 per cent in 2023. This is an improvement from 16.6 per cent in 2019.

On work undertaken to improve productivity, the report points to the launch of a new round of Access to Finance funding in May 2025. The funding aims to reduce the market gap in provision of finance to start-ups and SMEs; produce economic benefits; and develop a sustainable funding environment by encouraging the entry of other funders. It includes £100 million from Invest NI and is aimed at attracting over £150 million in private sector funding.

In December 2025, Fibrus Networks Ltd was appointed to deliver Project Gigabit which aims to deliver fast broadband to around 9,000 rural premises, supporting digital transformation, competitiveness, and innovation.

AI is identified as key to boosting productivity, strengthening global competitiveness, and supporting inclusive growth. The Artificial Intelligence Collaboration Centre (AICC) has been launched, delivering postgraduate scholarships, professional training, and support for SMEs.

Regional balance

The Sub-Regional Economic Plan, published by DfE in October 2024, assesses regional balance through a headline figure combining those in employment with those in further or higher education.

When this metric is used, Delivering balanced regional growth in Northern Ireland, published by the Ulster University Economic Policy Centre in May 2025, says there is a 10 per cent gap between the top council area, Mid Ulster, and bottom council area (Derry City and Strabane).

It notes that this has closed significantly from 19 per cent, but says “there are still significant employment rate deviations between local government districts.

Regarding actions taken to improve regional balance, the report notes the publication of the Sub-Regional Economic Plan and establishment of 11 new local economic partners. Newry, Mourne and Down District Council and Causeway Coast and Glens Borough Council have commenced delivery of their local economic partnership action plans.

Land required for the expansion of Ulster University’s Magee Campus was purchased in February 2025. Numbers at the campus have risen by 22 per cent since 2024, the report shows.

The Tourism Vision and Action Plan, published in year one, aims to boost regional balance, raising productivity, creating good jobs, and supporting decarbonisation. In April 2025, funding was secured for the air route between Derry and London Heathrow for a further two years. This is pinned as a means of enhancing the North-West’s global connectivity.

Decarbonisation

The report says there is “much ground to cover” to meet decarbonisation goals. NISRA estimates greenhouse gas emissions at 18.2 MtCO2e in 2023. This represents a 7.1 per cent decrease compared with 2022 and a decrease of 31.5 per cent compared with the base year of 1990.

The report says there was a 53 per cent growth in the turnover of the low-carbon renewable energy economy. It says that £72 million was invested across 160 projects under the Invest to Save Scheme. DfE also held a consultation on the Offshore Renewable Energy Action Plan between February 2025 and May 2025.

In January 2026, the Executive agreed Archibald’s proposals to close the Non-Domestic Renewable Heat Incentive Scheme, enabling DfE to finalise regulations and progress operational planning ahead of Ofgem’s withdrawal. It was initially planned for these regulations to take effect in April 2026. The Renewable Heat Incentive Scheme (Closure) Regulations (Northern Ireland) 2026 remains in draft as of August 2026.

In February 2026, DUP economy spokesperson Phillip Brett MLA said: “The Minister frequently speaks of major bills and reforms, yet we see very little actually published.

“The Employment Rights Bill has become a clear example of why ministerial timelines, however well-intended, cannot even be treated as meaningful guarantees.”

The DUP has refused to agree to the bill’s terms with Deputy First Minister Emma Little Pengelly MLA criticising its proposal to give trade unions a right to request access to workers for recruitment and representation.

She says: “These are the most aggressive and expansionist access to trade unions, not just in the UK and Ireland but across the European Union.

“There is not a single business across Northern Ireland which supports the Minister’s proposals.”

First Minister Michelle O’Neill says: “The DUP continue to block this really important legislation getting over the line, this is about workers’ rights, this is about supporting women in the workplace, so I do not support their denial of rights.”