Federal Finance Minister Penny Wong says there are fewer people looking for work in Australia because of the global economy.
While unemployment figures did not rise as expected in July, the number of people looking for work fell.
Ms Wong has told Sky News the fall in the particpation rate demonstrates why there needs to be a concrete plan to help lift growth and create jobs.
"On jobs, the unemployment rate remained steady, but as you said we've seen some movement and what it reflects is what's happening in the global economy," Minister Wong said.
"What it shows is the importance of having a plan for the economic changes that are occuring in Australia."
The Coalition's Treasury spokesman Joe Hockey says people should not be fooled by the latest employment figures.
Australia's unemployment rate has remained at 5.7 per cent in July however the latest figures show that there was a fall in the number of people looking for work. .
The Federal Government has predicted the jobless rate will climb to 6.25 per cent this financial year and economic growth slows.
Mr Hockey says the only reason the unemployment rate remained the same is because people have given up looking for work.
"The unemployment rate would probably have a six in front of it if the participation rate this month this month, was the same as it was last month but because people are giving up looking for work the headline rate has remained the same.
"So that just illustrates we are in a deteriorating market that is heading towards an unemployment level of around 800 thousand Australians being out of work.
