The unemployment rate has fallen below 4 per cent for the first time since records based on International Labour Organisation criteria began in 1983, according to the Central Statistics Office (CSO).

The number of people out of work fell to 68,800 in the fourth quarter of last year, a decrease of almost 20,000 on the corresponding quarter of 1999. The unemployment rate now stands at 3.9 per cent, compared with 5.1 per cent one year previously.

Long-term unemployment has fallen by one-third, according to the Quarterly National Household Survey. There were 24,200 long-term unemployed in the fourth quarter of 2000, almost 12,000 below the corresponding 1999 figure.

However, the pace of growth in employment has slowed when compared with the exceptionally high increases seen during 1999, the CSO said.

On average, employment grew by 4.7 per cent last year, compared with an increase of 6.3 per cent in 1999. The rate of growth in employment continued to moderate during the course of 2000. The fourth quarter showed an annual increase of 62,900, or 3.8 per cent, compared with 6.1 per cent in the first quarter.

Full-time employment, which grew by 53,500 in the year, accounted for the bulk of the annual growth. The total number in part-time employment was 9,400 higher than in 1999.

In total, there were 1,710,300 people in employment in the fourth quarter of 2000, a fall of 27,600 from the seasonal peak recorded in the summer quarter.

Employment grew in the past year in all sectors except agriculture, forestry and fishing. The fastest-growing sectors were: construction, where employment rose by 23,300; the wholesale and retail sector, with a 13,300 rise in the numbers employed; and education and health, which saw employment grow by 16,000.

Unemployment fell in all regions during the year, the CSO said. The largest employment increase - 23,500 - was in the Dublin region, which now has the State's lowest rate of unemployment at 2.9 per cent. The Border region has the highest unemployment rate at 5.4 per cent. Welcoming the figures, Government chief whip Mr Seamus Brennan said the economy was continuing to translate strong growth into jobs.

But the Irish National Organisation of the Unemployed, while welcoming the fall in unemployment, said the figures masked the reality of unemployment and disadvantage in many communities throughout the State.