Today's rise in unemployment figures shows the need for an urgent re-jig of the Government's labour migration policies, the CFMEU said today.

ABS figures showed unemployment was up nationally from 5.1 per cent in May to 5.2 per cent in June. The number of people employed decreased by 27,000.

The increase in unemployment was felt most sharply in South Australia and Tasmania, while the resource sector states saw a lower jobless rate.

CFMEU National Secretary, Michael O'Connor said the figures demonstrated the need to resist the 'Rineharting' of the workforce.

"Rising unemployment is the clearest sign yet that Australia is on the wrong path in accelerating our 457 visa program and Enterprise Migration Agreements," Mr O'Connor said.

"While it may suit mining magnates like Gina Rinehart and Clive Palmer to increase the use of foreign labour, Australian workers are missing out on the bounty of the resources boom.

"There are thousands of young people, Indigenous Australians and of course those recently laid off in the manufacturing and construction sectors who need jobs.

"Australians deserve to be considered first for work in the resources sector and the Government and big business risk a significant backlash if they do not heed the message in these new unemployment numbers and more significantly the overall trend.”

Mr O'Connor said the fact that unemployment rose markedly in the non-resource sector states means the RBA has a responsibility to keep cutting interest rates, to place downward pressure on the dollar.

"These figures show the patchwork economy is alive and real. Both the Government and the central bank need to continue to focus on our ailing manufacturing sector which will be the bedrock of our economy long after the cyclical resources boom ends."

Further comment: Michael O'Connor 0418 550 831