UNEMPLOYMENT in East Lancashire is continuing to rise - but the rate of increase has slowed.

Latest figures show 15,946 people claimed unemployment benefit in the region in May, an increase of 143 from April.

This compares to April's data which showed an increase in the claimant count of 666 people from March.

Last October just 8,218 were claiming unemployment benefit, before the recession took hold.

And cautious business bosses said they did not know if the stats meant the worst of the recession was behind us, but said they were encouraged.

In three districts the number of people signing on went down in May to Pendle (2,223), Ribble Valley (571) and Chorley all saw small drops.

Areas where the claimant count went up were Blackburn with Darwen (4,363), Burnley (2,659), Hyndburn (2,161) and Rossendale (1,832).

Nationally the total number of unemployed people, including those not on benefits, rose to 2.26million in the three months to April, the highest since November 1996, the Office for National Statistics said.

But the number of people claiming unemployment benefit rose by 39,000 in May, less than had been forecast by some analysts.

Paul Kenny, general secretary of the GMB union, said: "We may be seeing some slow-down in the numbers losing their jobs."

Mike Damms, chief executive of East Lancashire Chamber of Commerce, gave a cautious welcome to the figures and said he hoped this area would fare better than others because it does not depend on the financial, housing or motor industries.

He added: "One month's figures can, quite frankly, mean anything.

"They don't tell us the worst is behind us but what they gently point towards is our speculation that the nature of our industries has given us a degree of shelter."

Across the area covered by Lancashire County Council, which does not include Blackburn with Darwen, the number of people on unemployment benefit went down, for the first time in a year, to 25,539.

Meanwhile, the man in charge of the regeneration of East Lancashire, Max Steinberg, said he was "encouraged" by the latest picture.

Mr Steinberg, the chief executive of Elevate, said: "We are seeing no reduction in new business-startups and a continuing stream of business expansions."