Shadow treasurer Joe Hockey says the unemployment rate would have hit six per cent in July if people hadn't given up looking for work.
Official data shows the jobless rate remained at 5.7 per cent in the month, defying expectations it would rise to a 10-year high of 5.8 per cent.
However, the participation rate, measuring the number of people in work or actively seeking employment, fell to 65.1 per cent from 65.3 per cent.
"The unemployment rate would probably have a six in front of it if the participation rate this month was the the same as last month," Mr Hockey told reporters in Sydney on Thursday.
"My greatest concern for the future of the Australian economy is rising unemployment under Labor."
The Australian Bureau of Statistics data also showed the number of people in work in July fell by 10,200. The forecast was for a 10,000 increase.
"The Labor government has given up on job creation, they have no plan to create jobs, only the coalition has a plan," Mr Hockey said.
He said the coalition, should it win the September 7 election, would help stimulate the economy by ditching the mining and carbon taxes and cutting the corporate tax rate to 28.5 per cent.
"There is a clear pathway to deliver growth and prosperity and to deliver jobs security," he said.
"The only job (Prime Minister) Kevin Rudd cares about is his own."
