The jobless rate rose to seven per cent in October, despite the number of people in employment jumping by an unexpected 178,800 in the month.
The nation's underemployment rate decreased to 10.4 per cent, and the number of monthly hours worked increased by 21 million compared with September.
"The recent sharp rebound in job ads and vacancies will lead to future hiring".
"This strong increase means that employment in October was only 1.7 per cent below March, and reflects a large flow of people from outside the labour force back into employment", he said.
Full-time employment increased by 97,000 in October, while part-time employment rose by 81,800.
The unemployment rate remains shy of the 22-year high of 7.5 per cent recorded in July, but both Treasury and the Reserve Bank have forecast it rising to eight per cent before the end of the year.
NSW was the only state to experience a significant decline in unemployment, with a 0.7 per cent drop, compared with a 0.1 per cent drop in Western Australia and rises in every other state.
The Reserve Bank says getting more people in jobs is a national priority and won't be happy until the jobless rate is closer to five per cent.
The increase in the unemployment rate is explained by an increase of people looking for work, largely as a result of JobSeeker conditions.
The number of people out of work rose by almost 26,000 over the month.
Aviation workers hold a protest to fight for jobs at the Sydney Opera House spelling out the words: "Qantas - not the spirit of Australia" and "Save Qantas jobs, save aviation".