THE Government has signalled a further rise in unemployment after 1998, with rapid growth in the labour force and the return of immigrants expected to once again push up the number of people out of work.

While unemployment will fall in 1997, the Government has cautioned that it may increase again in 1998 and 1999.

The forecast, the first to signal a another upsurge in unemployment over the next couple of years, appears in Government documents presented to the social partners in the course of the on going pay talks.

Fianna Fail spokeswoman for enterprise and employment, Mrs Mary O'Rourke, said the forecasts revealed a "worrying trend", highlighting the need for a coherent employment strategy.

The forecasts do, however run counter to other official long term projections for unemployment.

The recent Forfas 15 year strategy document sets targets which would cut the rate of unemployment in half over the next 15 years.

The report, Shaping our future: A Strategy for Enterprise in Ireland in the 21st Century, states that Ireland's unemployment rate should fall from around 13 per cent now to 6 per cent by 2010.

It targets a sizeable fall in long term unemployment, which it states could be cut from 127,000 to around 50,000 over a 15 year period.

Mrs O'Rourke added that the expected rising trend in unemployment should be publicly highlighted, particularly in the context of the on going pay talks which cover the period between 1997 and 1999.

The document, prepared by Mr Michael Tutty, second secretary at the Department of Finance, forecasts continued strong growth in employment in the economy in the period up to 1999, with inflation remained low.

The number of new jobs in the Irish economy will grow on average by 33,000 per year between 1997 and 1999, with somewhat higher than average levels being achieved next year.

The economy is expected to grow at around 2.5 per cent on average over the three year period.

Ireland, it added, would benefit from a recovery in expanding international markets.