The latest unemployment figures show the size of the economic challenge before the government, Treasurer Joe Hockey says.
The jobless rate unexpectedly jumped to six per cent in January, the highest level in more than 10 years.
The last time the unemployment rate had a six in front was in July 2003 when it was 6.1 per cent.
The number of people in employment also fell by 3700 when economists had expected a 15,000 increase.
"The disappointing labour force figures revealed today are the unfortunate reality of six years of Labor government," Mr Hockey told reporters in Canberra.
"They are not unexpected but they indicate the size of the challenge we have before us."
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