Further evidence of an economic upturn came today with publication of Live Register data that showed the number of people signing on has dropped nearly 5 per cent in the year to June.
This gives an unemployment rate of 4.3 per cent compared with 4.4 per cent in January. The number of people signing on last month fell by 8,900 compared with June 2003, the Central Statistics Office said. This compares to an annual decrease of 4,113 or 2.5 per cent in the year to May 2004.
The data for June shows a rise of 6,980 compared with May to 168,952. This time last year there was a corresponding increase of 11,747, in the same month.
However, the seasonally adjusted total fell from 168,000 in May to 167,000 this month, a fall of 1,000. The monthly increase of 6,980 was mainly women, with 5,456 females signing on compared to 1,524 males.
The CSO noted that about 2,400 of this increase were as a direct result of changes to the Back to Education Allowance scheme.
Today's positive employment news follows Exchequer data yesterday which shows the Government finances are exceeding expectations and that the economy is now growing faster than at any time since 2001.
Growth in Gross National Product (GNP) was up 5.1 per cent in the first quarter of the year. The half-yearly Exchequer returns will be published this afternoon.
The Taoiseach said the continuing fall in the numbers on the Live Register "clearly vindicate the Government's approach to managing the economy while the ESRI predicts that we can be confident about future prospects.
"The Live Register figures released today show nearly 9,000 fewer claimants than in the same month last year, giving an unemployment rate of 4.3 per cent. When viewed alongside a GDP growth rate of 6.1 per cent in the first quarter of 2004, it is clear that the economy has returned to a strong growth path."
This optimistic view was not shared by the Labour Party spokesman on Enterprise, Trade and Employment, Mr Brendan Howlin, who described the month-on-month increase of 7,000 as "disappointing".
"With such strong economic growth, one would have hoped that the Live Register figures would be falling further, rather than beginning to rise again."
Fine Gael Finance spokesman Mr Richard Bruton said the 4.5 per cent rise in unemployment between May and June was disappointing given that the economy appears to be showing signs of recovery.
"The live register figures published today show an increase of almost 7,000 people on the dole between May and June, before the figures are seasonally adjusted. This is further evidence that the Fianna Fáil/PD Government must buck up its handling of the economy."
The Live Register does not measure unemployment, according to the CSO, as it includes part-time, seasonal and casual workers entitled to receive unemployment assistance or benefit.
Unemployment is measured by the Quarterly National Household Survey. The latest seasonally adjusted figure, for December to February 2004, is 85,500 persons unemployed.
