A finance department official said the total number of jobless will probably rise to 1,115,000 people during the last three months of this year from 1,030,000 people in the first quarter. Unemployment rolls are expected to swell further to 1,166,000 people in the last quarter of 1990.

He forecast in budget documents that Canada's inflation rate will rise to 4.8 per cent this year from 4.1 per cent last year. But inflation should then fall back to 4.4 per cent as growth in the economy slows sharply in 1990.

Budget documents projected that housing starts will drop to 198,000 units this year and 170,000 units next year from the very high level of 223,000 units in 1988.