Western Australia's peak business group has joined the Opposition in condemning a sharp increase in the state's unemployment rate, with claims the "unacceptable" and "catastrophic" result warrants immediate reform.

WA's jobless rate increased from 6.5 per cent to 6.9 per cent in November, reaching its highest level 2002.

However, the state no longer has the highest unemployment in the country, with South Australia leading the way at 7 per cent as the overall national rate edged up to 5.7 per cent.

WA Opposition Leader Mark McGowan blamed Premier Colin Barnett for the spike and said the Liberal Party had failed to plan for the end of the mining boom.

"6.9 per cent is catastrophic. The Government has its head in the sand," Mr McGowan said.

"Mr Barnett thinks everything's OK. It is clearly not okay. That's why we need a change, we need a fresh start, we need a plan for jobs.

"[The Government] failed to diversify the economy. They failed to ensure there was significant financial capacity left from the boom times, for the lean times that followed."

Mr Barnett said he was disappointed in the unemployment figures and acknowledged jobs would be an important election issue.

"There is no doubt there is a large number of people in Western Australia who are unemployed, there are also many other people who are working part time when they'd prefer to be working full time," Mr Barnett said.

But he said he believed the economy had started to turn around in October and there could be more confidence in the coming year, but conceded it was largely anecdotal.

"It's what I hear from business people across a whole range of industries. But the employment market always lags behind and that takes some time," Mr Barnett said.

He thought if there was a silver lining it was that full-time jobs had increased by over 7,000 in the month.

"That does indicate that maybe, while the unemployment figure is high and very unsatisfactory, it does indicate that on the jobs site maybe we're starting to see some sunshine come through," Mr Barnett said.

State Development and Transport Minister Bill Marmion dismissed the Opposition's claims and trumpeted the Government's jobs record as he marked the completion of work to duplicate the Russel Road Bridge and widen a section of Kwinana Freeway in Perth.

Mr Marmion said the two transport projects had created 500 jobs, with a further 300 workers engaged on the Aubin Grove train station.

Federal Employment Minister Michaelia Cash defended her WA Liberal counterparts, saying the Barnett Government's policies had created thousands of jobs.

Senator Cash said the WA jobs figures were the result of a "transitioning economy", and noted a jump in the workforce participation rate was a very positive sign.

'Urgent policy' changes needed: CCI

But the state's Chamber of Commerce and Industry (CCI) used the jobless figures to again call for changes to payroll tax.

"This unemployment rate is unacceptable," CCI chief executive Deidre Wilmott said.

"It's the highest that it's been since 2002 and it calls for urgent policy announcements by our political parties going into an election."

The CCI wants the current $850,000 payroll tax threshold immediately indexed to the Consumer Price Index , and then increased by $50,000 each year to eventually reach $1.5 million.

The peak group ultimately wants the tax abolished.