UNEMPLOYMENT and inflation are continuing to rise in the Island.

Last month unemployment increased by 24 to 891, an unemployment rate of 2.1 per cent.

During March 268 signed on and 244 signed off and of the total unemployed 626 are men and 265 women.

A total of 624 vacancies were notified to the Job Centre during the month and at the end of the month 384 positions were still vacant and held on file.

Meanwhile the annual rate of inflation as measured by the Retail Price Index (RPI) increased from 6.1 per cent in February to 6.7 per cent in March.

The annual rate of inflation excluding houses costs shown by the RPI increased from 6.8 per cent in February to 7.6 per cent in March while the annual rate of inflation shown by the Consumer Prices Index increased to 6.6 per cent in March from 5.6 per cent in February.

Treasury Minister Anne Craine MHK said: "Increasing inflation is a worldwide problem at the moment, to the extent that we are beginning to see central banks raise their base interest rate in response.

"We cannot insulate ourselves from these external price pressures, particularly as we import the overwhelmingly majority of the goods we buy.

"What we can do, however, is continue to seek to protect those most vulnerable to rising prices, particularly families and individuals on low, fixed income."

In terms of unemployment she said: "The figures for March are disappointing and are particularly concerning in respect of the building industry.

"Past experience leads me to expect a better employment picture over the next few months, so we need to wait a bit longer before concluding whether the labour market situation is indeed worsening.

"What gives us some cause for optimism is the continued buoyancy in job vacancy figures. Over 600 jobs were notified to the Job Centre during March."