UNEMPLOYMENT fell by 300 last month to 281,500, according to seasonally adjusted figures released yesterday by the Central Statistics Office.

However, the jobless total continues to run well ahead of last year and almost 6,000 more people were unemployed last month compared to May 1995. Last month's fall, the first in three months, was also accounted for by a drop in unemployment among those under 25.

The numbers on the live register normally fall sharply in May as seasonal work in areas such as construction and agriculture pick up. Last month the 6,443 fall in the total was 300 more than would normally be expected due to these seasonal factors, leading to the seasonally adjusted fall.

The Minister for Finance, Mr Quinn, last night welcomed the figures. "This is further evidence that the Irish economy is thriving," the Minister said. Measures aimed at tackling long term unemployment which had been announced in the Budget would shortly be coming on stream and should result in further reductions in the figures, he said.

However, opposition parties claimed the figures showed Government attempts to cut the numbers of unemployed were not working.

Mrs Mary O'Rourke, deputy leader of Fianna Fail, said the May figures showed the rate of reduction in unemployment was much too slow. "The drop of 300 is wiped out by the 400 Packard redundancies which begin to come on stream now," she said.

"The figures also show the Government is ignoring the recent National Economic and Social Forum Report on tackling long term unemployment," she added.

Ms Mary Harney, leader of the Progressive Democrats pointed out the heavy financial costs unemployment. A recent study estimated that each person out of work cost the Exchequer £10,200 a year in unemployment compensation and income tax foregone, she said.

"Unemployment represents an enormous waste of human and financial resources. This Government appears to have no strategic plan for solving the problem," she said.