Updated May 17, 2018 13:03:21

Photo: Workforce participation levels hit a new high in April, nudging up unemployment. (ABC News: Danielle Bonica)

Australia's jobless rate has edged up to 5.6 per cent despite another 22,600 jobs being added in April.

The rise in unemployment was driven up by more people looking for work, with the participation rate in the workforce rising to a record 65.6 per cent.

In seasonally adjusted terms 32,700 new full-time jobs were created over the month, more than offsetting the loss of 10,000 part-time positions.

In trend terms, unemployment was flat while 14,000 new jobs were added.

"The labour force participation rate was the highest it has been since the series began in 1978," Australian Bureau of Statistics chief economist Bruce Hockman said.

"It's important to remember how much change there is in the labour market every month beneath a net increase of 14,000 persons.

"It's actually well over 300,000 people entering employment, and more than 300,000 leaving employment in any given month."

Positive signs in participation, more hours worked

Job creation was marginally ahead of market expectations after two soft months, including the first net monthly loss of jobs since 2016.

Callam Pickering, the Asia-Pacific economist for global job site Indeed, said while jobs growth rebounded, employment has only increased by 14,500 people over the past three months.

"It is safe to say that the remarkable employment growth witnessed last year is over," Mr Pickering said.

However, Mr Pickering said there were some bright spots in the data.

"The participation rate remains at a record high on a trend basis, defying the widely held assumption that an ageing population would force it lower," he said.

"Total hours worked also increased strongly, posting its strongest annual gains in over seven years."

Unemployment stays high in resources states

In seasonally adjust terms, New South Wales accounted for the lion's share of new jobs (+27,100), while Western Australia and South Australia also reported solid gains.

Victoria (-10,000) and Queensland (-8,200) shed the most jobs.

The big mining states Western Australia and Queensland are still experiencing the highest levels of unemployment (6.5 per cent), while News South Wales has the tightest jobs market with unemployment at a national low of 5 per cent, although on a trend basis the Northern Territory and ACT are lower.

Topics: business-economics-and-finance, unemployment, australia

First posted May 17, 2018 11:36:53