There may be as many as 58,000 people claiming the dole fraudulently, according to a report by the Dail Select Committee of Public Accounts.

The committee chairman, Fine Gael TD Mr Jim Mitchell, said it would appear that either there are at least 58,000 fraudulently claiming the dole or there is some other explanation, which no one has come up with.

The committee, which is considering recommending that all unemployment and related services such as job-finding and training be administered by one agency, is preparing a report on the large and growing difference between the Live Register of unemployment and the Quarterly National Household Survey.

In February, the Live Register stood at 207,601 while the quarterly survey stood at 106,000. They measure unemployment in a different way. But even when adjustments for the number in part-time work, on pre-retirement allowance or awaiting decisions are taken into account, the difference between the measures is at least 58,000 and could even be substantially higher at up to 90,000, according to Mr Mitchell.

"Not all of these are likely to be fraudulent claims but the committee is perplexed as to what other explanation there could be for such a major divergence. This suspicion is reinforced by the widespread shortage of labour reported throughout the economy," said Mr Mitchell.

The committee has asked the Departments of Finance, Enterprise, Trade and Employment and Social, Community and Family Affairs to report back within three months on how to improve the figures.

They have been asked to report on how best to measure unemployment.