The benefits of scrapping the mining and carbon taxes will take time to work through to the labour market, Employment Minister Eric Abetz insists.
Senator Abetz was responding to the latest jobs figures that showed the unemployment rate unexpectedly jumping to 6.4 per cent, its highest level since August 2002.
There were also 12,200 fewer people in employment in January.
Economists had expected a small increase.
Senator Abetz says getting rid of the carbon and mining taxes will help create and maintain jobs, as will the free trade agreements secured by the Abbott government.
"Will they work magic overnight? No," the minister told reporters in Canberra.
"But what it does is create confidence in manufacturers ... and hopefully growing jobs in a whole range of areas as seen in the agricultural sector."
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