The seasonally-adjusted rate of unemployment has fallen by 1,300 to 212,500, according to the latest figures from the Central Statistics Office (CSO).

The December figures put the standardised rate of unemployment in the Republic at 7.1 per cent, the lowest level since modern records began. It has fallen from 8.7 per cent in December 1997.

The current EU average rate of unemployment is 9.8 per cent, with those states participating in the euro having an average rate of 10.8 per cent. The Republic has been below the EU average for most of 1998.

The seasonally-adjusted rate has fallen from 244,400 to 212,500 in the past year and is now at its lowest level since May 1984, when it was 211,400.

The latest figures show the unadjusted live register rising by 8,578, mainly due to seasonal factors and the temporary lay-off of some 1,300 workers at four Fruit of the Loom plants in Co Donegal. However, despite these factors, the monthly rise was not as great as would normally be expected in December, a fact which resulted in the seasonally-adjusted fall.

The decline in the seasonally-adjusted rate is entirely accounted for by fewer men signing on. There was a monthly increase of 500 in the seasonally-adjusted figures for women, probably largely due to the Fruit of the Loom layoffs.

Since December 1997, falls in male unemployment have been bigger than the decreases recorded for women. The number of men signing on has fallen by 24,200, while the female figures have come down by 7,700.

The Minister for Social, Community and Family Affairs, Mr Ahern, welcomed the figures and said the rise in the live register was normal for this time of year, with 3,500 temporarily employed people in the educational sector signing on.

He said the employment action plan operated by FAS, in co-operation with his Department, should continue to exert downward pressure on inflows to long-term unemployment during 1999.

The Irish National Organisation of the Unemployed (INOU) said the rise in the unadjusted rate "may be a timely reminder that the Government needs to continue labour market initiatives that provide training and support to unemployed people getting back to work".

INOU chairman Mr Barrie McLatchie said the increase in the live register and the recent loss of jobs at Fruit of the Loom showed the Irish economy was not without weaknesses.

"The Government is about to cut back on labour market initiatives such as the community employment scheme, but the latest figures are a reminder that such support is needed, particularly for women, whose numbers have increased by 500 in the latest figures," he said.