In this ever-changing world, particularly in attempting to overcome the challenges around COVID-19, the need to support the upskilling of all people in Northern Ireland has never been greater. The pandemic has led to significant rises in unemployment. These rises have been limited by the furlough scheme, but significant numbers of people were still furloughed ahead of the scheme's closure in September 2021. Future employment opportunities will also be affected by the future path of the virus, recovery of the economy, and nature of adjustment to long-term changes such as the new trading relationship with the EU and transition to net zero. All of this makes it uncertain how high unemployment will rise. Long-term unemployment is particularly damaging as the longer someone is out of work the less likely they are to find a job and it can also negatively impact health and wellbeing. Limiting the rise in long-term unemployment and planning effective support to help those becoming long-term unemployed is therefore essential. In addition, Northern Ireland's employment rate was lower than the rest of the UK prior to the pandemic, with higher levels of economic inactivity the primary reason. This report looks at these twin challenges of limiting rises in long-term unemployment and cutting economic inactivity. These are at the heart of ensuring an inclusive labour market recovery in Northern Ireland. In particular, it analyses the overall labour market position, develops new projections for the potential levels of long-term unemployment, and identifies policy priorities including for how learning, skills and employment support can work together. [This research was supported by Open College Network Northern Ireland (OCN NI).]