The number people claiming unemployment benefits has increased at a record rate over the last year as the building slowdown results in job losses.
In just 12 months, the number of people signing on the Live Register for unemployment assistance has risen by almost a third, or by 54,400, the fastest rate of increase since records began over 40 years ago.
In June, 10,100 people joined the Live Register bringing the seasonally adjusted total signing on to 217,400, according to figures released by the Central Statistics Office this morning.
This is the highest level since September 1998 and the monthly increase was the second highest on record.
The Taoiseach Mr Cowen Earlier today called for calm following the latest in a series of negative economic indicators. "I think some of the talking down of the economy to the point almost where people are talking about Armageddon-type scenarios really needs to stop," Mr Cowen said today.
Fine Gael Enterprise, Trade & Employment spokesman Leo Varadkar said 635 people a day had lost their job every day during June.
"This is a Black Friday for workers as the CSO reveals the biggest ever increase in the live register in June. A total of 19,055 more people signed on between May and June, with 635 people losing their job every day."
Mr Varadkar said Fianna Fáil was to blame for many of the economic problems and said no other EU country -with the exception of Spain - "is experiencing the same surge in unemployment, and many are seeing unemployment levels fall".
On Wednesday, the Government said it would have to find savings of €500 million to fund additional social welfare payments for the rise in those unemployed due to the downturn.
"Unemployment claimants have spiked in the last six months, driven by housing-related layoffs, both direct and indirect," Rossa White, chief economist at stockbroker Davy, said, adding that the number of claimants was now up 45,800 in the first six months of the year.
Mr White said it was the worst spike since the first half of 1975, a period he said characterised by the "first oil shock".
Mr White said he was lifting his forecast unemployment forecasts in light of today's data and disappointing services exports figures yesterday.
He now expects annual unemployment of 6.2 per cent this year and 7.5 per cent next year, up from 6.1 per cent and 7 per cent.
This morning Irish-based concrete supplier Readymix said it had cut 15 per cent of its workforce in response to weaker economic conditions.
The sharp increase in the numbers signing on pushed the estimated unemployment rate to 5.7 per cent, compared with 5.4 percent in May. The CSO's most recent quarterly national household survey put the unemployment rate at 4.8 per cent.
The Live Register is not strictly a measure of unemployment as it includes part-time workers, seasonal and casual workers who are entitled to jobseekers benefit or allowance. However, it is a useful indicator of short-term changes in the numbers out of work.
The latest data comes after a series of weak economic statistics showing mortgage lending growth at a 16 year low, manufacturing shrinking for a seventh straight month and the services sector contracting at the fastest pace in at least eight years. Consumer confidence is at the lowest point since records began 12 years ago.
The vast majority of those who joined the register since the start of the year were males, accounting for 42,000. That is the highest annual increase on record.
On a non adjusted basis the monthly increase was 19,055, another monthly record, and the total was 220,811.
"The run of weak short-term economic data is proving relentless," said Dermot O'Leary, chief economist with Goodbody Stockbrokers.
The Cabinet will discuss a range of response to the economic slowdown at its meeting next Tuesday as Exchequer returns earlier this week showed a projected €3 billion shortfall in tax revenue.
Tánaiste and Minister for Enterprise, Trade and Employment Mary Coughlan said today Government spending would be readjusted in light of the Exchequer returns.
"It's important to say we're not in a situation of meltdown. We're not in a situation where the public finances are in serious threat. That is not where we're at this is not the 1980s," she said.
Mr Varadkar said while "all EU countries are struggling with the international slowdown, Ireland is also struggling from the collapse of a domestically-generated and debt-fuelled housing bubble and a sustained loss of competitiveness", he said.
Labour Party spokesman Enterprise, Trade and Employment Willie Penrose said the data "caps a week of terrible economic news" for the Government and the country.
He said it was ten years since the Live Register had been at these levels and that it was difficult to see how the Government could meet its revised target of 210,000 on the register this year.
"The worst thing that could now happen would be for the government to engage in a splurge of thoughtless cutbacks that would take more people out of work and add yet greater numbers to the dole queues," he said.
