Young people are turning to social media to find jobs and those positions aren't being captured in job advertisement data, the federal employment minister says.
The latest job data shows the national unemployment rate has ticked up to 5.3 per cent, up from 5.2 per cent.
Employment Minister Michaelia Cash put a positive spin on the increase, saying it was due to more participation in the job market.
"The headline figure is a direct result of Australians putting their hands up and saying 'I'm ready, willing and able to work'," she told reporters in Canberra on Thursday.
"66.2 per cent, a record participation rate in Australia, that's actually a very good thing."
But while job advertisement numbers show there aren't nearly enough jobs to satisfy demand, Senator Cash again saw the positives.
"Young people don't necessarily go to Seek or the ANZ Jobs information. They often go to social media, Facebook, Twitter," she said.
"So the way jobs are actually advertised now by employers is fundamentally different than what it used to be.
"And those figures don't take into account the reality of the way employers are actually advertising. Word of mouth is often utilised to get a job."
The most recent Internet Vacancy Index showed job ads increased 0.4 per cent in July, after six consecutive months of decline.
Despite the recent increase, the index is still 5.5 per cent below the level recorded a year ago.
Australian Associated Press