Jobless rate reaches new long-term high

Australia's unemployment rate has reached a new long-term high, jumping to 6.4 per cent.

The spike of 0.3 per cent in January was in defiance of hopeful market predictions.

The dollar also dropped on the back of the new figures, falling to US76.56c.

It has taken the currency down near to six-year lows.

The unemployment level is at its highest level since August 2002.

Neither can the government hide behind the number of people with jobs - there were 12,200 fewer people in employment.

Economists had expected a small increase.

This included a 28,100 drop in full-time employment, partly offset by new part-time workers.

The weak result will inflame jitters over job security and raise speculation about another interest rate cut by the Reserve Bank.

With AAP.