Opposition Leader Bill Shorten says a rise in the jobless rate shows the coalition government does not have a plan for the economy.
The jobless rate unexpectedly jumped to six per cent in January, the highest level in more than 10 years.
"The Abbott government has got serious questions to answer," Mr Shorten said.
"What is the jobs plan of the Abbott government? What are they doing to stop the tens of thousands of jobs that are either going overseas or just disappearing?"
Asked whether the previous Labor government took any responsibility, Mr Shorten said: "The Abbott government is in charge."
Labor employment spokesman Brendan O'Connor said the participation rate was lower than at any time since April 2006.
"Eligible people have stopped looking for work because they have no confidence that the government is helping create the environment to produce jobs," Mr O'Connor said.
