Official figures have confirmed that the number of people on the Live Register hit a record high of almost 328,000 in January.
The Central Statistics Office said the numbers signing on rose by almost 36,500 from December to 327,861, confirming figures given by Taoiseach Brian Cowen in the Dáil earlier this morning. The Taoiseach told the Dáil unemployment could reach 400,000 by the end of the year.
The Live Register figure has now surged by more than 80% over the past 12 months. The seasonally adjusted figure rose by 33,000 to 326,100, while the unemployment rate jumped to 9.2%. up from 8.3% in December.
Men accounted for just over two-thirds of the January increase. In January last year, the Live Register stood at 181,400.
The CSO pointed out that January was a five-week month, and that in percentage terms, the January's monthly rise was not the highest on record.
Fine Gael leader Enda Kenny described the Live Register figures as horrendous, adding that the Government's proposals yesterday did nothing to offer hope or confidence to those who had lost their jobs.
Labour leader Eamon Gilmore said each lost job cost the State €20,000 a year in social welfare payments and lost tax, and the jobs lost in January alone would cost an extra €730m.
Figures could get worse - economists
Ulster Bank economist Pat McArdle said that, even if the average monthly rise fell back to 20,000, the Live Register could reach 545,000 by the end of the year. He said today's figures would put further pressure on the already strained public finances.
Bloxham's Alan McQuaid described the data as 'horrendous', and underlined the fact that the Irish economy was now in crisis mode. 'Apart from the sharp fall in construction employment, other sectors like manufacturing, retail, transport, and financial services are starting to significantly feel the pinch too,' he added.
Davy said welfare payments would rise by at least €350m based on the last month alone, though the Government will get some of this back through taxes as that money is spent. The stockbroker expects the unemployment rate to reach 13% by the end of 2010.
