The numbers of long-term unemployed - those out of work for more than a year - have fallen to historic lows, according to new Government research.
In a report for the Department of Social Affairs, Indecon consultants found that just over one-quarter of all those on the dole have been collecting it for more than a year.
"This is a major change in performance and some previous estimates had suggested that much of Ireland's unemployment was structural," said Indecon.
The number of long-term unemployed now stands at 1.2 per cent of the total workforce, down from 13 per cent during the 1980s. In 1999, it was estimated that 9 per cent were out of work for more than a year.
Since 1999, the Department of Social Affairs has run the National Employment Action Plan to encourage and help the long-term unemployed back into work, referring people to Fás after six months.
The number of people helped by the course has risen from 21,702 in 1999 to 43,595 in 2003, with further rises since then.
In 2004, the employment action plan cost €15.5 million to run, though this bill does not cover the cost of a number of other supports available to the long-term jobless.
Under the programme, the long-term unemployed are called for a Fás interview, though experience has shown that significant numbers quit the live register immediately they are called.
The employment plan saved €50 million gross for Social Affairs during 2004, and €35 million when the costs of the programme are deducted.
Since 1997, the number of people employed in the Republic has increased by over 525,000. Unemployment has fallen from 10.3 per cent in 1997 to 4.2 per cent at the start of 2005.
Two-thirds of the 10,290 under-25s referred to Fás by the action plan left the live register before they were interviewed, while the percentage stayed remarkably consistent through higher age groups.
Up to 50,000 long-term unemployed are to be questioned regularly by the Department of Social Affairs about their attempts to find work once the Minister, Séamus Brennan, introduces reforms to the State's unemployment payments.
Instead of being referred to Fás after six months, the unemployed will have to appear before the agency after a month if they are to be allowed continue to claim a new "jobseekers" allowance, which will combine the existing unemployment benefits and assistance schemes.
One-third of those seen by the action plan officers said they believed that the programme had helped them "a lot" to get back to work, though another third said it had helped "not at all".
