Rising jobless rate a challenge, Rudd says PRIME Minister Kevin Rudd says the rise in the jobless rate highlights the challenges facing the Australian economy. The Australian Bureau of Statistics said on Thursday that the unemployment rose to 5.7 per cent in June - the highest since September 2009 - compared with an upwardly revised 5.6 per cent in May. Addressing the National Press Club in Canberra, Mr Rudd said the increase in unemployment was a challenge and "underlines the absolute a paramount importance of prosecuting the new national competitiveness agenda." Mr Rudd announced a new productivity pact between business, unions and government aimed at smoothing the nation's economic transition out of the resources boom. But he also noted the Australian unemployment rate was lower than almost every other advanced economy. Tasmania suffered the biggest rise in unemployment in the month, surging to 8.9 per cent in June from 7.5 per cent previously. Mr Rudd said he would spend some time with the Tasmanian premier to see what can be done to support the island state. Unemployment in the prime minister's own state of Queensland also jumped to 6.4 per cent from 5.9 per cent. He said people are concerned about their job security. "That's effecting business confidence, and frankly its flowing through in terms of the ability of small businesses to keep their doors open in some sectors," he said. Asked whether the government is considering increasing unemployment benefits, Mr Rudd said it is concerned about these social challenges. "We will be doing want we can in these areas," Mr Rudd said. Opposition employment spokesman and Tasmanian senator Eric Abetz blamed Labor-Green governments for job destroying polices both in Canberra and Hobart. "These new figures from the ABS reflect particularly badly on my home state of Tasmania with almost two out of every 10 Tasmanian jobseekers either out of work, or looking for more work," Senator Abetz said in a statement. "Kevin Rudd's first task as prime minister was to call together caucus at taxpayers' expense to protect his own job, meanwhile hundreds of thousands of Australians have no job," he said in reference to Mr Rudd's proposed reforms into how the Labor leader is chosen.