The Bay of Plenty experienced a slight rise in unemployment during the three months to the end of March, according to the latest Statistics New Zealand figures.

Unemployment hit 7.4 per cent in that period, compared to 7.3 per cent in the three months to the end of December 2010.

The figures encompass the entire Bay of Plenty, not just the Tauranga region.

Tauranga Chamber of Commerce CEO Max Mason believes Tauranga's unemployment rate will be below seven per cent.

'We have a lot more service industry, a lot more manufacturing, retail and domestic tourism.”

'When you get more of a varied local economy there's more sensitivity so when things recover it tends to happen quicker compared to an economy with much fewer types of industry.”

The general rate in the Bay of Plenty is still tracking downwards.

In September last year the unemployment rate hit 8.6 per cent, the highest in at least two years.

Max believes there is more optimism in Tauranga.

'Some of the recruitment agencies are saying similar things – that there are more vacancies out there.”

'While it's still pretty rocky in a lot of the sectors such as retail and residential construction, it is still tough times in other areas but things are improving.”