Western Australia's unemployment rate has risen to its highest level in 16 years, in what analysts say is a result of restrictive retail trading hours and high payroll tax.

New Australian Bureau of Statistics (ABS) data shows, in seasonally adjusted terms, WA's unemployment rate rose from 6.1 to 6.9 per cent from February to March.

It is the highest rate since January 2002, when the unemployment figure sat at 7.1 per cent.

WA's Chamber of Commerce and Industry (CCI) chief economist Rick Newnham said it was as a result of the State Government's "anti-job policies".

"6.9 per cent is the highest rate in the nation, and that means that there are more people than ever looking for a job and can't find one in WA," Mr Newnham said.

"This is a pretty bad state of affairs."

Mr Newnham said WA was being hindered by the "most restrictive retail trading hours and the highest payroll tax on jobs in the nation".

"The Government cannot expect low unemployment in WA when it increased payroll tax in its last budget, putting a handbrake on SMEs taking on more employees, and has walked away from supporting the upskilling of the WA workforce by removing the Payroll Tax Exemption for existing employees," he said.

Increase due to 'jobseekers:' Minister

The McGowan Government brushed off the figure, saying it was nothing to worry about.

"12,000 additional people re-entered the market looking for work and that results in this apparent increase in unemployment," frontbencher Paul Papalia said.

"What's happening now is increased optimism in the workforce.

"People who had previously given up on looking for work have entered the market in the last month."

Mr Papalia said 744 people had found jobs in March.

Labor failing on jobs pledge: Opposition

But the Opposition took aim at the Government, saying it was failing to meet its election promise to create 50,000 jobs.

"There are 98,000 people seeking employment that can't find a job, the highest since records began in 1978," Mr Nalder said.

"We have seen unemployment increase by 10,000 [jobs].

"This really flies in the face of the commitment that the McGowan Labor Government made to the people of Western Australia."