Decade-high jobless rate plagues the Abbott government

There's no festive cheer for the Abbott government tonight, with confirmation our unemployment rate is at its highest point in more than a decade.

At the moment, more than 770,000 Australians are out of work, according to figures revealed in the lead-up to the Treasurer's mid-year budget update.

The unemployment figures demonstrate the pressure on Australia's economy.

Employment minister Eric Abetz said finding job for these people was a challenge.

“What it shows is that the task is difficult, but we're up to it,” he said.

While 42,500 Australians found jobs in November, the vast majority of these were in part-time roles.

The unemployment rate, at 6.3 percent, is now at its highest level since 2002.

Westpac has put consumer sentiment at three-year low and NAB reports business confidence is slipping.

Opposition leader Bill Shorten linked the Budget woes with sluggish growth.

“This unfair budget has had a big negative impact on confidence and we are seeing the backlash,” he said.

Youth unemployment is also up to 14.5 percent.

“Our young people need to have a better prospect than the prospect of being unemployed,” Mr Shorten said.

On the back of the data, the chances of an interest rate cut in the new year are growing.

The Government is banking on a boost from free-trade deals, infrastructure projects and a falling Australian dollar to “reboot” the economy.

Next week Joe Hockey will deliver his mid-year budget update, amid softer numbers both economically and in the polls.

Chris Richardson from Deloitte Access Economics said: “The boom of the last decade is winding down - the money is long since gone - but we are still dealing with the permanent promises of both sides of politics.”