Fresh evidence of a tentative economic recovery emerged yesterday as new figures showed the numbers claiming unemployment fell during September by the sharpest rate in nearly 18 months, writes Edward Power

The number signing on fell 15,131 to 170,822 compared to the previous month, pushing the jobless rate down a tenth of a point to 4.4 per cent.

Seasonally adjusted, the jobless total dipped 4,100 - the biggest downturn since April 2002, the live register analysis by the Central Statistics Office shows.

But the CSO cautioned against reading too much into the register, warning it should not be regarded as a measure of unemployment as it includes casual and part-time workers claiming benefits.

Analysts said the results underscore the economy's resilience as the anticipated global recovery continues to prove elusive.

Mr Jim Power, chief economist Friends First, said the labour market has shown itself more robust than many expected.

He added: "Given the difficult international background against which the Irish economy has operated over the past couple of years, this labour market performance is pretty remarkable and suggests it is still very flexible and resilient."

Despite the CSO's insistence that the live register should not be treated as a measure of unemployment, Government politicians seized on the figures as proof that its job creation strategies are paying off.

However, the Opposition dismissed the results as a seasonal blip, partly attributable to students signing off to return to school and college.

Ms Coughlan, Minister for Social and Family Affairs said the economy is performing confidently despite the unstable international background.

Mr Sean Fleming, Fianna Fáil TD and chair of the Dáil Committee on Finance and the Pubic Service, said the fall in the seasonally adjusted register vindicated Government policy.

"An unemployment rate of just over half the euro zone average is remarkable performance," he said. "It is even more notable in the context of the high levels of unemployment that plagued us in the past and... is less than half what it was when this Government came to power in 1997."

Labour finance spokesman Mr Brendan Howlin said the data was a seasonal one-off overshadowed by a spate of recent closures that pushed the official notified redundancies figure up 60 per cent rise in September

He said: "These job losses have yet to make their way on the live register figures and it seems inevitable that the numbers signing on will continue to rise towards the end of the year."

Rather than congratulating itself, the Government should tackle the issues impeding job creation, Mr Howlin said.

"For instance, there is virtual consensus among employers that the high cost of insurance is one of the biggest problems they face yet, despite repeated promises, we have had virtually no concrete action to tackle this problem."

The Green Party joined in the criticism, saying the Government is not doing enough to encourage indigenous industry.

The TEEU union, representing technical and engineering workers, said the improved live register is cold comfort for the 25,000 manufacturing staff who have lost their jobs in the past two years.

TEEU Assistant General Secretary, Mr Eamon Devoy said: "Many of these workers are middle-aged male breadwinners whose families will face considerable hardship."