PREMIER Ted Baillieu has unveiled his first plan to help solve Victoria's growing jobs crisis - creating more than 1000 new occupations in state prisons.

The jail-led jobs recovery will be unveiled by the Baillieu Government today in response to growing concerns about sackings, particularly in the manufacturing industry.

The plan will see at least 1178 new jobs created at five prisons throughout Victoria - 690 in construction roles created by expansion of the jails to create more prison beds and 288 in permanent roles such as prison wardens, health-care workers and cleaners.

It emerges as Mr Baillieu visited Alcoa's Point Henry smelter where 600 workers are in danger of losing their jobs.

The Government has promised hundreds more building jobs and a further 200 staff posts in prison projects between now and the 2014 Victorian election.

It expects its prison expansion program to create at least 1500 jobs in total in the next three years.

The jobs plan - detailed exclusively to the Sunday Herald Sun - comes on the back of more than 162,000 Victorians being sacked or retrenched in the past year and with 600 workers at Geelong's Alcoa plant fighting to keep their jobs.

Mr Baillieu said new prison infrastructure would boost public safety and the economy.

"These investments are generating new jobs during construction and permanent roles," he said.

"This is positive news for metropolitan Melbourne and regional Victoria."

Corrections Minister Andrew McIntosh said the prison system expansion - in line with the Government's election commitments of tougher sentencing and abolition of suspended sentences - would also spark economic growth in towns near the prisons by tapping into local food, accommodation and other industries.

"It's about keeping Victoria safe, but there is also a significant boost for local economies," he said.

The jail-jobs pledge could generate more employment, with the Government considering a $2 million business case for construction of a new 1000-bed Victorian prison.

If it goes ahead, the new jail would create hundreds more construction and permanent jobs.

The Premier yesterday told Alcoa staff: "If anybody thinks that there is a magical solution that will occur overnight, I think they're misunderstanding the nature of this difficulty."

The Government has promised 500 new prison beds in its first term and has already opened 108 at Dhurringile and Langi Kal Kal.

Rolfep@heraldsun.com.au