The number of people on unemployment benefit edged up in February when adjusted for seasonal factors, implying a slight increase in the unemployment rate.

Analysts remain optimistic about employment trends for next year, but say that growth will be driven by the construction and financial services sector.

Figures released yesterday by the Central Statistics Office (CSO) put the total Live Register at 159,617 for the month. In unadjusted terms, this is 522 lower than January. But when adjusted for seasonal factors, it represents an increase of 200 over January and 900 on the preceding January.

The figures follow several high-profile closures in January and February. Last month Japanese electronics firm NEC closed its plant in Ballivor County Meath with the loss of 350 people adding to layoffs at Proctor & Gamble and GN Resound. Last Tuesday the Department of Enterprise, Trade and Employment revealed that the number of jobs lost in January was over 40 per cent higher than January 2005.

Unadjusted Live Register numbers are broken down by province and age and show that the number of persons on the Live Register fell in Leinster and Munster, while rising in Connacht and Ulster.

The strongest fall occurred in the Dublin area, where the numbers registered fell by almost 1,400. The strongest rise occurred along the border where numbers were up almost 800. Amongst the under 25s the Live Register was up 255 in February over January, compared to the unadjusted fall in the Register.

But Alan McQuaid of Bloxham stockbrokers said that in spite of the modest rise, employment prospects remained good and that unemployment was set to fall in the coming year.