Sydney - Unemployment in Australia rose to 5.2 per cent in February from 4.8 per cent in January, official figures released Thursday showed.

A fall of 53,800 full-time positions was outweighed by a rise of 55,600 part-time jobs as workers were shifted from permanent to casual employment because of the economic downturn.

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.

The jobless rate is now at its highest level in four years with the number looking for work at 590,000. The government is forecasting an unemployment rate of 7 per cent next year.

UBS Wealth Management economist Scott Haslem said workers are willing to lose hours and income to keep their jobs.

"You could argue that there is a bit of a casualization in the labour force going on," he said. "People are retaining their part-time jobs, or people are being moved from full-time jobs to part-time jobs, being asked to work shorter hours in the name of keeping a job, but reducing businesses' costs in the face of a slowing economy." (dpa)