The Australian unemployment rate fell to 6.2 percent in August, with the number of employed people increasing by more than 17,000.

Last month’s rate of 6.3 percent was the highest in 13 years and today’s announcement by the Australian Bureau of Statistics was widely expected.

"The increase in employment was driven by increases in male full-time employment, and female full-time and part-time employment, with the largest increase seen in full-time employment for males," the ABS said in a statement.

Males in full-time employment increased by more than 10,000 jobs, while the number of unemployed people decreased by 14,400.

The underemployment rate remained steady at 8.4 percent. Underemployment refers to a situation where a person is employed but working fewer hours than is sufficient.

The Federal Government announced its $6.8 billion Jobactive program in March, aimed at getting the unemployed back to work with better incentives for employers.

Treasurer Joe Hockey yesterday said last month's increase in the unemployment rate could have been skewed by the increase in jobseekers.

A Coalition bill which would force those under 25 to wait for a month before accessing welfare was blocked by the Opposition yesterday.