Australia's jobs market is on the slide with layoffs and unusually weak public service recruitment providing a sobering start to the year.

New figures show employment growth of only 1 per cent in the 12 months to December, not enough to keep pace with population growth of 1.6 per cent.

The December figures pushed up the national unemployment rate from 5.3 to 5.4 per cent and sparked talk of a further interest rate cut when the Reserve Bank board meets on February 5.

This year ''looks set to be yet another year of lacklustre jobs growth'', declared Westpac economist Justin Smirk. ''On current trends, unemployment will hit 5.75 per cent.''