The number of people out of work rose at the highest rate in almost a year, according to seasonally adjusted live register figures published yesterday.

The 1,800 people joining the register in May was the highest since July 2003. It brought the seasonally adjusted total to 168,000.

Unadjusted figures from the Central Statistics Office, however, showed a fall of 2,688 in the numbers signing on to 161,972.

Over the past year, live register figures have fallen by just over 4,000.

The jobless rate rose marginally in May, to 4.5 per cent, from 4.4 per cent in April but it is still comfortably below the 5 per cent some commentators have forecast for 2004.

Yesterday's data were hailed by the Government as vindication of its economic policies while the Opposition rounded on the increase in the seasonally adjusted total.

The Tánaiste, Ms Harney, said the register proved the economy "continues to thrive", particularly in light of the recent Exchequer returns which show tax receipts running 22 per cent ahead of last year. She added: "Every county in Ireland is benefiting from job growth."

But Fine Gael said the upswing in seasonally adjusted unemployment was a warning to the Government of the dangers of complacency.

If the economy was in recovery, why was this figure creeping upwards, asked Mr Phil Hogan, the party's enterprise spokesman.

He said: "Tánaiste Mary Harney must heed the message from these figures that the Government cannot continue with its laissez-faire approach to managing the economy... The Tánaiste has allowed Ireland to become one of the most uncompetitive places to do business in the world."

The Irish National Organisation for the Unemployed (INOU) noted a divergence between the 11,000 redundancies announced on Thursday for the year to date and the 2,688 fall in the headline live register figure.

Mr Eric Conroy, INOU general secretary, said: "The majority of those recently made redundant are completing their notice period and have yet to claim their unemployment payment."