Live register figures for the end of September, released yesterday, show the largest monthly drop since figures were first collated, bringing the standardised unemployment rate down to just 3.8 per cent.

There were 144,932 people on the live register at the end of September, the lowest total since December 1981 when there were 141,146 people signing on.

The drop since September 1999 is the largest annual drop since records began.

During last month the number signing on fell by 14,094 persons and over the past 12 months the number signing on has dropped by 41,251 persons.

The Central Statistics Office, in a statement accompanying the figures, said much of the September decrease was due to the seasonal effect of schools and colleges re-opening after the summer holidays.

After adjusting the figures for seasonal factors, the underlying trend in September was a fall of 6,100.

During September, 8,869 women and 5,225 men signed off the register. Those under 25 years of age signing on at the end of September numbered 24,423, the lowest figure for this age category since July 1980.

The live register is not designed to measure unemployment as it includes part-time workers as well as seasonal and casual workers entitled to benefits.

Unemployment is measured by the Quarterly National Household Survey and the latest figure, for March-May 2000, is 74,900 persons or 4.3 per cent.

The Tanaiste, Ms Harney, said the achievement illustrated by the latest figures from the CSO would have been considered impossible a few years ago.

She said a "milestone" had been reached.

"The Irish economy is going from strength to strength. Since this Government took office in mid-1997 there are now over 290,000 additional people at work, representing a growth of 21 per cent."

The rise had contributed to improvements in standards of living and to the fight against social exclusion.

Ms Harney said the Government would continue its strategy of lowering the "burden of taxation" and mobilising labour supply.

She said she had revamped the work permits system to enhance the inflow of migrants directly into jobs in Ireland.

"Attracting people to take up job opportunities and helping the long-term unemployed and other disadvantaged groups to access and hold on to jobs are the twin challenges facing the Government."

The Minister for Social, Community and Family Affairs, Mr Ahern, said the latest record fall in the numbers unemployed showed that less than 100,000 people were getting a full weekly payment.

He said the number of long-term unemployed had been halved since April 1997, falling from 125,000 to an estimated 60,000 at present.

Mr Denis Naughten, the Fine Gael spokesman on enterprise, trade and employment, welcomed the figures but said the Government was clearly failing to intervene adequately to prepare some unemployed people for a return to work.

"At a time when FAS is holding recruitment fairs abroad to fill job vacancies in this country, there are still 74,900 people unemployed according to the latest figures from the Quarterly National Household Survey."

The Labour Party spokesman, Mr Pat Rabbitte said he was concerned that the drop-off in the number of women signing on indicated that many were in insecure employment and forced to sign off during the summer months.

"This pattern of signing on and signing off suggests that women are the main victims of casual, atypical and temporary employment."