In the 12 months to August of this year, the number of people on the live register dropped by 31,824 to 198,670, continuing the downward trend that has been evident for the past five years. It was good news for the Coalition Government and reflected the continuing strong growth in the economy. Publication of the figures caused the Government chief whip, Mr Seamus Brennan, to claim that unemployment should not be measured by reference to the live register but to the household survey, which indicated that only 95,000 people were seeking work. On the basis of the latter figure, he said, unemployment was now at its lowest level in 20 years, while the numbers at work had reached record levels. Mr Brennan is correct that the live register was not designed to measure unemployment. But the household survey figures understate the unemployment problem because persons who work for as little as one hour a week are considered to be gainfully employed.
Whatever the real level of unemployment, we do know that serious economic black spots remain in our major cities and in some deprived regions. The number of long-term unemployed is still a source of serious concern and a threat to social stability. But efforts are being made to address the problem through a series of measures including FAS courses, other job creation measures and adult education programmes. The Government has committed itself to specific action in economic black spots and to share the fruits of the so-called `Celtic Tiger'. Within six weeks, the Coalition Government will complete its deliberations on a new, six-year national development plan and transmit it to Brussels. The document is expected to reflect the Government's commitment to regionalisation and a more equitable spreading of economic growth across the State, through the introduction of Objective I and Objective 2 regions.
The live register figures confirm the correctness of such a course of action. An uneven pattern of job creation and economic growth has emerged, with Dublin and the east showing a significantly higher number leaving the register. Although no precise job creation figures are available, there was a 20 per cent drop in the number signing on the dole in Dublin in the past year and an 18 per cent fall in the mid-east region. These percentages are about double those in the Objective 2 regions, with 10, nine and eight per cent reductions taking place in the west, border and midland regions. Some slight evidence of a slowing in the level of economic activity also emerged as, during the past six months, the numbers signing off the dole on an annualised basis has fallen from 32,796 to 31,824.
The fall in live register figures means that the Minister for Finance, Mr McCreevy, will have yet more money to spend in his autumn Budget. The cost of dole payments to the Government will drop by about £1 billion a year. And extra revenue will become available from the newly-employed through income tax and other charges. These resources, along with a sizeable part of the national pension fund now being planned by the Government, should be invested in modernising the State's creaking infrastructure. New motorways, water and sewage treatment plants, public transport and other facilities, are all in desperate need of investment. Taking a long-term view and making it happen through a new national plan could underpin our economic performance for years to come and lay the foundations for a more equitable society.