The number of people on the Live Register fell last month, resuming a downward trend that was interrupted by a blip in July. Colm Keena reports.

The number on the register, when seasonally adjusted, fell 2,800 to the lowest level since December 2002.

Seasonally adjusted, the number on the register fell from 169,300 in July to 166,500 in August, bringing the standardised unemployment rate to 4.3 per cent, half the euro-zone average. The seasonally adjusted figure has fallen by 10,200 in the past year and analysts said they believed the unemployment rate would drop to 4 per cent by the end of the year.

Labour's Enterprise and Employment spokesman Mr Brendan Howlin said the "small" drop in the live register figures was no grounds for complacency. The reduction "does not mask a worrying trend in recent months, especially in the manufacturing industry".

He said the latest figures were "particularly disappointing against the background of recent exceptional economic growth". He called for the early implementation of the Enterprise Strategy Group's recommendations.

Davy Stockbrokers said the results for August constituted the largest annual per cent fall for three years. "We expect the unemployment rate to continue to inch towards 4 per cent over the balance of the year."

Bloxham Stockbrokers said the underlying trend in the live register remained positive. "At this stage we now think the average number on the live register in 2004 will total around 166,000, down almost 6,500 from just under 172,500 in 2003."

The Irish National Organisation of the Unemployed (INOU) welcomed the "slight" reduction in the live register figure. "However, it still means that more than 175,000 people are claiming an unemployment payment. These individuals still need assistance to help them into the labour market."

The Central Statistics Office, which released the August figures yesterday, said the Live Register is not designed to measure unemployment, as it includes part-time, seasonal and casual workers.