Jobless rate reaches six year high

However, the result was not as dire as some economists had predicted.

Economists' forecasts had centred on a more aggressive increase to 5.9 per cent after the seasonally-adjusted rate rose to 5.7 per cent in May.

The number of people employed fell by a seasonally-adjusted 21,400 in June, including a 21,900 decline in full-time workers, the Australian Bureau of Statistics said.

The number of part-time employees rose by 400.

Economists had expected a 20,000 drop in total employment.

The federal government is warning of more job loses to come, predicting an unemployment rate of 8.25 per cent by the middle of next year.

NSW continued to record the highest jobless rate, rising to 6.5 per cent in June from 6.4 per cent in May.

In Victoria the rate rose to 6.0 per cent from 5.9 per cent, in Queensland it increased to 5.4 per cent from 5.3 per cent and in Western Australia it was up to 5.1 per cent from 5.0 per cent.

In the ACT the rate rose to 3.6 per cent from 3.4 per cent, but in the Northern Territory it was unchanged at 3.9 per cent, as it was in South Australia at 5.4 per cent.

Tasmania bucked the trend with an extraordinary drop in its jobless rate to 4.7 per cent from 5.6 per cent the previous month.