A further 10,500 people signed on to the Live Register in July bringing the standardised unemployment rate to 12.2 per cent, according to new figures from the Central Statistics Office (CSO).
The total number of people on the register at the end of last month was 423,400 compared to 412,900 in June, the lowest monthly increase since last September.
On average, there were 2,100 more people signing on for the first time per week as against 3,000 in June.
An additional 5,100 men and 5,500 women joined the register last month.
The unemployment rate is now at its highest since April 1995 and up from just 6.4 per cent a year ago.
In June, the jobless rate stood at 11.9 per cent while at the end of the first quarter, the standardised unemployment rate was 10.2 per cent.
The unadjusted jobless rate rose by an additional 17,143 people from June to 435,735 last month, giving an annual increase of just under 83 per cent.
During July there were an estimated 37,415 men and 32,138 women on the register who were defined as casual or part-time workers.
Young people continue to be adversely affected by the recession with the latest figures showing that unemployment among the under-25s is still rising at above the national average. Out of a total of 423,400 people on the seasonally unadjusted Live Register, some 91,755 are under the age of 25, according to the CSO data.
Last month an additional 3,657 people under the age of 25 signed on while in the year to the end of July 43,104 people in that age category joined the Live Register.
Responding to the latest figures, the Construction Industry Federation (CIF) said the priority for the Government must be about sustaining existing jobs in the sector while helping to create the environment for new jobs to be generated.
"Allowing unemployment to continue to rise is the more expensive option for the Government and the economy. The better option is to invest in employment saving measures, keeping people in employment rather than becoming social welfare recipients," it said.
Fine Gael warned of a 'summer of discontent' for the Government, with its innovation spokeswoman Deirdre Clune saying the Taoiseach was presiding over the worst job implosion ever seen in Ireland. “Unless this is addressed effectively, and addressed soon, we will have a serious long-term unemployment problem for years to come," she said.
The Labour Party described the latest figures as "shocking" and called for urgent action to be taken to stem losses.
"Those of us who lived through the 1980s hoped that we would never again see such numbers on the Live Register; now we are seeing figures of more than 100,000 greater than anything seen in the worst days of the 1980s," said employment spokesman Willie Penrose.
Sinn Féin said the jump in unemployment was directly due to Government inaction on the jobs front.
