The number of homeless people continues to grow in Vancouver but more of them are finding a place to sleep in government-supported shelters.

A survey conducted by the city on March 23 found 1,762 homeless people, an increase of 12 per cent from 2008.

But it also found a nearly 50 per cent drop in the number of the homeless living on the streets and an almost 75 per cent increase in the number in shelters.

Mayor Gregor Robertson says some people in shelters have found jobs, others are getting health care, and city officials have noticed a decrease in crime and street disorder, including aggressive panhandling in the downtown core.

He says the city's shelter plan is working but new housing, both interim and permanent, is still needed.

Robertson also says provincial government funding for three of the city's seven shelters runs out at the end of the month and if the shelters are forced to close, 500 people could be turned out onto the streets.