WA's unemployment rate rises

Western Australia's rising unemployment rate isn't surprising given the resources sector slowdown, the state treasurer says, but there are encouraging signs the economy is diversifying.

While the national jobless rate fell from 5.9 per cent to 5.8 per cent last month, WA's rose to 6.6 per cent, from 6.4 per cent.

WA treasurer Mike Nahan said the figures were not surprising given the resources sector was moving from the construction phase to production, exacerbated by continuing low commodity prices that were limiting the short-term potential for new projects.

But there were encouraging signs of the economy starting to diversify away from resources, he said.

"Reduced costs are helping foster new investment in agriculture, education, tourism and health," Dr Nahan said.

But opposition treasury spokesman Ben Wyatt said the state government had not prepared for the inevitable slowing that followed the mining boom.

He accused Premier Colin Barnett of making no attempts at diversification, leaving the state balance sheet vulnerable and "disdainfully" considering innovation and industries beyond mining as shallow.

The Liberal leader earlier this week reportedly responded dismissively to Prime Minister Malcolm Turnbull's calls for innovation, saying the mining sector was "the one industry that can take on innovation, fund it and implement it".

"You've probably heard comments in the past few days saying the mining boom is over, so we're going to be the innovation society or whatever else - you know, that's a little bit shallow in thinking," Mr Barnett was quoted as saying.

Federal Employment Minister Michaelia Cash sought to put a positive spin on the figures, saying WA's participation rate was the nation's highest.

In a similar vein, Dr Nahan pointed out that while the annual average unemployment rate for WA had risen slightly to 5.9 per cent, it remained lower than the national average of 6.1 per cent.