Jobless rate hits 5.7 per cent

The seasonally adjusted rate for March is the highest level since December 2003.

It compared with 5.2 per cent in February and is 1.8 percentage points above the 34-year low of 3.9 per cent record in February 2008, Australian Bureau of Statistics data released on Thursday shows.

The number of people employed dropped by a seasonally adjusted 34,700 in March.

There was a 38,900 slump in full-time workers, while there was a small rise in part-time workers.

Economists had expected total employment to fall by 25,000 in March and a jobless rate of 5.4 per cent.

The federal government is expected revise up its unemployment forecasts in the May 12 budget given the rapid deterioration in economic activity.

In February, it forecast a jobless rate of 5.5 per cent by June 2009, rising to 7.0 per cent by mid-2010.

Unemployment 'to go higher than seven per cent'

Deputy Prime Minister Julia Gillard says the new figures show "Australia is battling a global recession that is resulting in falling growth and rising unemployment right around the world". 

She repeated the government's prediction that unemployment would go higher than the seven per cent forecast earlier this year.

"As the treasurer has said, the worsening global recession means that unemployment here will inevitably be higher than previously forecast," Ms Gillard said. "Forecasts will be updated through the budget."

"These figures are sobering news," Ms Gillard said.

"The global recession of course has hit jobs around the world."

The United States had an unemployment rate of 8.5 per cent, while Canada and the United Kingdom had jobless rates of more than seven per cent and six per cent respectively, Ms Gillard said.

"This global financial crisis and global recession has hit jobs around the world and of course is having a significant impact on jobs in this country."  

NSW worst hit

NSW suffered the biggest blow with the state's unemployment rate lurching to 6.9 per cent in March from 5.9 per cent in February.

Western Australia showed another solid rise in the jobless rate to 4.9 per cent from 4.1 per cent, while in Queensland it rose to 4.8 per cent from 4.5 per cent.

In South Australia it increased to 5.9 per cent from 5.7 per cent, in Victoria it rose to 5.7 per cent from 5.6 per cent and in the ACT it increased to 2.8 per cent from 2.7 per cent.

Bucking the trend, the jobless rate was unchanged at 4.9 per cent in the Northern Territory and in Tasmania it fell to 4.3 per cent from 4.5 per cent.