The official jobless rate rose to 5.8 percent in June, as the slowing economy forced companies to cut staff numbers.
The latest ABS figures have revealed 21,400 jobs were lost in June, the highest since October 2003.
Full-time employees were hardest hit with 21,900 positions lost, while part-time employees rose by 400.
While the figure has jumped from 5.7 percent in May, it is slightly lower than the 5.9 percent figure economists were predicting.