The unemployment rate rose to 5.8 per cent in November, despite the number of people in employment rising by 21,000 in the month.
Economists had anticipated an increase in the jobless rate from 5.7 per cent in October, although the number of people gaining work was double expectations.
Full-time employment rose by 15,500 in November and part-time jobs was up 5500.
The participation rate of those people in or actively seeking employment remained at a lowly 64.8 per cent - a level not seen since late 2006.
The result is unlikely to have an immediate impact on interest rates given the Reserve Bank has already indicated it expects unemployment to edge higher as the economy grows at a sub-trend pace.
The unemployment rate is at a three-month high.
Among the states, the jobless rate rose to 6.2 per cent from six per cent in Victoria, and increased to 6.8 per cent from 6.6 per cent in South Australia.
However, it fell to 5.6 per cent from 5.9 per cent in Queensland.
Rates were unchanged at 5.9 per cent in NSW, at 4.3 per cent in Western Australia and at 7.8 per cent in Tasmania.
In the territories, the jobless rate was unchanged at 4.2 per cent in the ACT, while falling to 4.7 per cent from 4.9 per cent in the Northern Territory.
