Salary Survey 2010 - Nicva

2.3 Economic EnvironmentThe widely publicised credit crunch and subsequent recession has penetratedthe private, public and voluntary sectors with varying impacts. In particular theeconomic environment has adversely affected levels and conditions ofemployment. At the least, it created a decrease in the number of jobvacancies; an increase in the number of unemployed persons and JobSeekers Allowance claimants; and a substantial increase in the number ofredundancies. According to the recent Salary Survey by Abacus therecruitment decline started to impact in autumn of 2007, although the mostsevere period of economic decline was experienced between mid-2008 andlate 2009. Nonetheless, considering the most recent labour market statistics,there is some degree of optimism with evidence showing economic conditionsare easing, employment levels are rising, albeit slowly, economic inactivity isdown on the previous quarter and year and there has been an increase inmedian gross weekly earnings. Recovery is expected to be slow. 29As a region, Northern Ireland has been affected severely by the economicdecline and is in a more disadvantaged position than the UK since earningsare already lower and the employment rate is well below the UK average.Nonetheless, to date the region has been somewhat cushioned from theeffect of the economic decline on employment since the public sector is amajor employer and there is a high level of economic dependency on thesector compared to other regions in the UK. However, this is now undersevere threat due to impending public sector cuts. 302.4 The Voluntary and Community SectorThere are an estimated 4,700 voluntary and community sector organisationsin Northern Ireland. The latest State of the Sector Report of 2009 notes atrend in the overall decline in income in the voluntary and community sector,estimating that the total income of the voluntary and community sector inNorthern Ireland was £570.1 million for 2006/07. This is a 7.2% decrease from2003/04 when the income was £614.6 million. Detailed analysis shows thatgovernment remains the largest funder of the sector, spending £259.1 million(45.4%) on the activities of the sector. This is followed by income from thegeneral public. However, figures show that whilst these donations continue tomake up a significant part of the voluntary and community sector’s income,there has been a reduction in donations from 32.5% of total income in2003/04 to 31.9% in 2006/07. 31While income has continued to decline, the impending public sector cuts andneed for efficiency savings are also likely to impact further on the level ofincome allocated by government to the voluntary and community sector sincemany organisations are responsible for delivering public services.29 Abacus Professional Recruitment (2010) Northern Ireland Salary Survey 2010/2011.30 Abacus Professional Recruitment (2010) Northern Ireland Salary Survey 2010/2011.31 NICVA (2009) State of the Sector V, Northern Ireland Voluntary and Community Sector Almanac.NICVA: December 2010 21