Australia's unemployment rate rose to 7.4 per cent in June, despite the addition of more than 210,000 jobs.
The number of unemployed people rose by 69,300 to 992,300 in June, according to the Australian Bureau of Statistics.
It means the country's unemployment rate has risen from 7.1 per cent in May to 7.4 per cent - the highest in Australia since November 1998.
An increase of 210,800 in employment was underpinned by a large increase in part-time employment. Overall, employment increased to 12,328,500 people.
Full-time employment decreased 38,100 to 8,489,100 people and part-time employment increased by 249,000 to 3,839,400 people.
"The easing of COVID-19 restrictions in June saw an extra 280,000 people in the labor force, with more people in employment, and more actively looking and available for work," Bjorn Jarvis, head of labor statistics at the ABS, said.
Prime Minister Scott Morrison said the increase in employment showed "the Australian economy is fighting back".
"Australians depend on that fight and incomes depend on that fight and we are in it and we are making progress," Mr Morrison said as he announced the JobTrainer scheme, which will help Australians retrain for areas where skills are needed.
"It doesn't mean we don't have setbacks. We are experiencing some might now."
Mr Morrison said the Victorian coronavirus lockdown could mean July's figures would be worse.
The JobKeeper program is also masking the true unemployment rate, which Treasurer Josh Frydenberg has estimated to be more than 13 per cent.
JobKeeper is due to expire in September, but the prime minister has hinted at additional support in the coming months.
"We have been putting further touches on the last few days to ensure the decisions we've made are as timely and targeted as possible," Mr Morrison said.