Sydney - Unemployment in Australia rose to 4.8 per cent in January from 4.5 per cent in December, official figures released Thursday showed.

   Economists had predicted as many as 17,000 jobs would be lost, but 1,200 jobs were created with a steep fall in full-time employment was outweighed by a rise in part-time employment.

   The unemployment rate rose despite the increase in jobs because the number of people looking for work - what economists call the participation rate - went up.

   "More people are entering or staying in the workforce to try and make financial ends meet," J P Morgan economist Helen Kevans told Australia's AAP news agency.

   The jobless rate is now at its highest rate in 31 months.