The number of people claiming unemployment benefit has risen significantly, according to the latest Live Register figures. In unadjusted terms, the register rose by 647 in February, but this was against a backdrop of a traditional increase in employment at this time in the wake of the Christmas break.

Calculations of the Central Statistics Office (CSO), which yesterday published the figures, show that, when adjusted for seasonal factors, the Live Register rose by 1,500 in February, more than reversing a fall of 400 in January.

The figures follow the announcement of a number of high-profile layoffs in January. However, the register is still 218 people lower than it was at the end of February last year.

The data reflect a strong rise in redundancies during January. According to figures released yesterday by the Department of Enterprise, Trade and Employment some 2,792 people lost their jobs during that month, 20.7 per cent more than in January 2006. But the same figures suggest that fewer redundancies occurred in February.

The Live Register does not measure the level of unemployment - it includes temporary and part-time workers receiving benefit - but based on the February numbers the CSO calculates that the official unemployment rate rose to 4.3 per cent in February. The latest official rate of unemployment, calculated for January in the CSO's Quarterly National Household Survey - was 4.2 per cent, down from 4.4 per cent in November.

Bloxham stockbrokers economist Alan McQuaid said that, despite the increase, Ireland's unemployment rate was significantly better than the average euro zone rate of 7.4 per cent.

"Official figures from the CSO continue to paint a bright picture of the labour market. The latest data from the Quarterly National Household Survey (QNHS) showed that the huge surge in jobs and immigration continued in the last three months of 2006."

But Mr McQuaid warned that the employment situation was increasingly becoming dependent on the construction sector. "The big question relates to the construction sector, which has recorded substantial increases in recent years. The indications are that growth in this area will fall back this year." Bloxham's predict the rate of unemployment will rise to 4.5 per cent in 2007.

Labour party spokesman on enterprise, trade and employment Ruairí Quinn said yesterday: "The economy is becoming increasingly uncompetitive and workers without key skills face an uncertain future.

"The Government has become complacent and are riding on the back of success created by others."