Most of the newly unemployed people in the Irish Republic this New Year had held occupations in 'craft and related' and 'plant and machine operatives', and the vast majority were men, all factors indicating that the construction industry was badly affected by the job losses.

Fresh Government statistics show the number of people signing on the Live Register has increased in December despite falls over the previous three months.

According to the Central Statistics Office this morning, seasonally adjusted figures show some 444,000 are now signing on for unemployment benefit, an increase of 5,200 from November and 13,484 for the year.

The Labour Party's Willie Penrose said the huge increase was grim New Year news and showed there was still a huge challenge facing the country to undo the huge economic damage.

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"This is the highest end of year figure ever recorded, it is one of the biggest ever increases for December over November, and it marks the nineteenth successive month in which the figures have been over 400,000.

"While the export statistics and the exchequer figures published this week, showed some recovery in the multi-national sector, the Live Register figures show that there is a still a huge problem in the domestic economy and with unemployment levels."

Fianna Fail however, have said statistics such as a rise in exports and car sales are hard proof that the present Government's policies "are working" and that the "real economy", or business environment, was forging ahead.

"2011 is going to be a very positive year for the economy and our people,” according to party spokesman, Michael Mulcahy.

However, these claims have been rubbished by Mr Penrose who said job creation and the needs of those without jobs had received virtually no attention from Brian Cowen and his government. "Mass unemployment is the political epitaph for this government," Mr Penrose said.

He added: "More than ever we need a new government that will put the country back on its feet and give job creation the priority it deserves."

(DW/GK)