The number of people out of work has again fallen sharply - to the lowest level in almost 20 years.

The live register fell to 163,689 in March, down 8,603 on the previous month, the lowest level since September 1982. When seasonally adjusted, the drop in unemployment is 6,200.

The decline brings the unemployment rate for March to 4.7 per cent, down from 7.7 per cent in March 1999. The total change over the year was 37,745, the third biggest fall in unemployment on record.

The Minister for Social, Community and Family affairs, Mr Ahern, said the figures were further confirmation of the great strides made in tackling the unemployment problem.

"When you consider that the register has fallen by in excess of 91,000 since the Government took office, despite the fact that the population has grown by almost the same figure over that period, you will realise that the advances made are quite startling," he said yesterday.

It was encouraging, he added, to see the number of long-term unemployed falling rapidly while almost 80 per cent of new people signing on were leaving the register within 12 months.

Meanwhile, the Tanaiste and Minister for Enterprise, Trade and Employment, Ms Harney, welcomed the figures yesterday, saying they reflected the very buoyant labour market. She said the further significant reductions in personal and corporate taxes introduced in the Budget, which come into effect this month, would continue to support further employment growth.

The Minister for State at the Department of the Taoiseach, Mr Seamus Brennan, said the figures represented further vindication of the Government's economic policies.

But the Labour Party spokeswoman on labour affairs, Ms Mary Upton, stressed that the figures should be viewed in a proper context. "While I believe that a reduction in our live register total is good news, it does not represent full employment and we have still a long way to go before this rate is acceptable."

Ms Upton said it was time to take a fresh look at the type of employment programmes in existence to address the needs of those out of work.

The numbers claiming unemployment benefits fell across all regions, although the biggest fall was in Dublin, where 2,325 signed off the live register.

The annual reduction in the number of men claiming unemployment benefits was 23,788, while the number of women signing off the register was 13,957.