The unemployment rate remains stuck at 5.2 per cent, despite a marginal increase of 500 jobs in June.

Key points: In seasonally adjusted terms, the unemployment rate is at a nine-month high and above the RBA's target of 4.5 per cent

In seasonally adjusted terms, the unemployment rate is at a nine-month high and above the RBA's target of 4.5 per cent A weaker than expected 500 new jobs came from the creation 21,100 of full time jobs and the loss of 20,600 part-time positions

A weaker than expected 500 new jobs came from the creation 21,100 of full time jobs and the loss of 20,600 part-time positions Jobless rates were largely steady across the states, but ticked up in Queensland, with Tasmania the highest and the ACT the lowest

The small increase in jobs was outweighed by another 6,600 workers joining the ranks of the unemployed.

On ABS seasonally adjusted figures, there are now 711,500 unemployed people in Australia.

Unemployment is now at its highest level since August last year.

A slight decrease in the seasonally adjusted participation rate — or the proportion of people in work or looking for it — from record highs prevented the unemployment creeping higher.

The good news in the figures was that the creation of 21,100 full-time jobs outnumbered the 20,600 decline in part-time positions.

The result was broadly in line with expectations, but leaves the jobless rate well above the Reserve Bank's target of 4.5 per cent — the level it calculates where spare capacity in labour market will be soaked up and wages will rise at a meaningful rate.

There was some other good news in the underutilisation rate — which includes unemployed and underemployed people — falling 0.3 percentage points over the month, but it remains high at 13.4 per cent.

Two-speed labour market

Indeed Asia-Pacific economist Callam Pickering described it as, "a rather disappointing employment report but not one that will change the outlook for the Reserve Bank".

"While the underutilisation rate remains high, at 13.4 per cent, stronger wage growth is unlikely.

"The underutilisation needs to drop to around 12 per cent before wage growth of 3 per cent a year becomes likely.

"Other measures of the labour market, such as job vacancies and advertisements, suggest that employment growth may slow over the next six months."

Mr Pickering noted another big concern was the narrow nature of employment growth.

"We still have a two-speed labour market, New South Wales and Victoria driving growth and then everyone else," he said.

"If conditions slow in these states, perhaps due to housing, then the overall labour market picture would deteriorate rather quickly."

Employment expectations tumbling

NAB's Kaixin Owyong said the largely flat result gave the RBA room to hold the cash rate steady at 1 per cent in August after its two successive rate cuts in June and July.

However, NAB maintained its view the RBA would be forced to cut rates again in November.

"It is likely the RBA would prefer to see what impact recent cash rate cuts and income tax cuts have on the economy," Ms Owyong said.

"In our view, though, momentum in the labour market is slowing, with the risk that the unemployment rate continues to tick higher — our forecasts see unemployment hitting 5.3 per cent by the end of this year."

NAB's quarterly business survey, also released today, shows employers' expectations for employment continue to decline on both a three-month and 12-month forward looking basis.

"With the unemployment rate well above — and heading further away — from the NAIRU [the RBA target for 4.5 per cent unemployment], it is likely wage pressure will remain weak," the NAB survey noted.