Tasmania's prisoner numbers are continuing to grow as the state government prepares to consider the best site for a new jail in the state's northern half.
The state averaged 646 people in full-time custody per day in the December quarter, the Australian Bureau of Statistics found.
That was up from 632 in the previous quarter and 620 in the December quarter of 2017.
Corrections Minister Elise Archer said prison populations across the country were growing and Tasmania was not immune from the trend.
"The Hodgman Government is investing $340 million in enhancing and building new prison infrastructure in Tasmania," Ms Archer said.
"This includes construction of a new 270-bed northern prison.
"Once the location is finalised and a managing contractor selected, it is estimated this major project will create more than 4000 direct and indirect jobs during construction and in operation."
Ms Archer said 10 potential jail sites in the North and North-West were submitted through an expressions of interest process.
This shortlist will be received by government in March for consideration.Elise Archer
"A siting panel has been considering these submissions for shortlisting," she said.
"This shortlist will be received by government in March for consideration."
Despite the increase in prisoner numbers, Tasmanians remained much less likely than Australians as a whole to be in jail.
Only the ACT had a a lower imprisonment rate than Tasmania's 154.4 prisoners per 100,000 adults.
The national rate was 217.9, with the Northern Territory the outlier, at 911.7.
In Tasmania, the number of male prisoners increased and the number of female prisoners decreased, comparing the two December quarters.
The male daily average went from 570 to 602.
The average of female prisoners dropped from 50 to 44.
The average of indigenous prisoners went from 119 to 123.
Indigenous Tasmanians were much less likely than all indigenous Australians to be in jail.
However, the imprisonment rate for indigenous Tasmanians (721 per 100,000 adults) was pushing towards five times the imprisonment rate for all Tasmanians.
The highest indigenous imprisonment rate was 4203 per 100,000 in Western Australia.