The standardised unemployment rate fell slightly in September, as the number of people signing on to the Live Register showed a monthly decline.

The percentage of people out of work was 14.3 per cent last month, compared with 14.4 per cent in August.

Seasonally adjusted figures from the Central Statistics Office showed a fall of 5,400, or 1.2 per cent, in the Live Register in the month to September 2011. That brings the total number of people now signing on to 442,200 on a seasonally adjusted basis.

In unadjusted terms there were 437,441 people signing on the Live Register in September 2011, a fall of more than 30,000 - or 1.1 per cent - over the year.

There was a rise in the number of term claimants over the year, with 183,399 - or 41.9 per cent - signing on for a year or more. That compares to 33.4 per cent a year ago.

Davy said it remained "wary" of the seasonal adjustment of the unemployment data.

"We cannot infer much from the marginal fall in the seasonally adjusted unemployment rate, given its volatility in recent quarters," chief economist Conall Mac Coille wrote in a note.

"Rising unemployment has sharply reduced the ratio of those in employment to claimants. For each Live Register claimant, there are now only four people in employment within the Irish economy. This ratio was 13 during the peak of the boom but is now at its lowest level since 1993."

The seasonally adjusted unemployment rate has remained static at about 14 per cent since September last year. The rate in August was 14.4 per cent and in July was 14.3 per cent.

Minister for Social Protection Joan Burton yesterday said she expected a "slight improvement in the unemployment situation" from today's figures, while Tánaiste Eamon Gilmore said he expected the figures to show the biggest decline in unemployment in four years. Ms Burton said she believed the economy was "bottoming out".

However, the Irish Small and Medium Enterprises Association (Isme) said the situation remained dire.

"Some efforts have been made through the jobs initiative and JobBridge internship programme, to address unemployment, but the reality is that these initiatives are not radical enough and do not provide enough incentives for employers to add to their employment numbers," chief executive Mark Fielding said.

"With companies doing their damndest to keep costs down, there is no incentive at present to take on new employees, unless there is a contribution from Government towards the costs.”