More than a million Australians were unemployed and looking for work last month, in new unemployment figures released by the Australian Bureau of Statistics (ABS).
The unemployment rate grew slightly from 7.4 per cent to 7.5 per cent, and the number of hours worked grew slightly from June.
July's labour force figures showed some signs of recovery, but there was a larger increase in people in part time work than full time work.
Underemployment decreased by 0.5 percentage points to 11.2 per cent, but was still 2.4 percentage points above March levels.
"The number of unemployed people rose by nearly 16,000 between June and July. For the first time there were more than one million people out of work, available to work and actively looking for work", ABS head of labour statistics, Bjorn Jarvis, said.
According to the bureau, the number of hours worked is increasing, showing signs of recovery. Since a low point in May, total hours worked has recovered almost half the hours lost between March and May.
While states and territories around the country were opening up at different stages, some states experienced a drop in unemployment, while others saw the unemployment rate continue to rise.
In the ACT, unemployment dropped to 4.6 per cent, the lowest rate in the country. In NSW the rate increased from 6.6 per cent to 7.2 per cent, and Queensland also experienced an increase to 8.8 per cent.
Measured before Melbourne moved to stage four restrictions and regional Victoria to stage three, July's figures show unemployment dropping in the southern state, but it is expected to increase again in the August figures.
More than 114,000 new jobs were created in July, a statistic that was seized on by Employment Minister Michaelia Cash.
"That shows you that, when you get the health crisis under control, then across Australia you are able to ease restrictions, reopen your economy, you will see those jobs returning," Senator Cash said on Thursday.