Australian Bureau of Statistics figures showed the jobless rate rose to 5.4% in December from 5.3% in November.

The number of Australians employed fell 5500 to about 11.5 million , while unemployment jumped by 16,600 to 653,800.

Despite the disappointing figures, trading on the S&P/ASX 200 remained strong with most sectors posting gains.

The index reached a 19-month high when it hit 4787.2 points.

At the closing bell, the index was up 0.4%, or 18.2 points, to 4756.6 and the All Ordinaries jumped 0.3% to 4779.7 points.

It was another flat day for the miners, with the basic materials sector losing a marginal 0.03%.

The majors were still mixed, with BHP adding 0.2% to $A36.34.

After dipping 0.5% yesterday, shares in Rio Tinto extended their losses, closing down 1.4%, or 95c, to $64.60.

The iron ore companies were weaker following a further dip in the price of iron ore.

Fortescue Metals Group lost 4.2%, or 19c, to $4.38, Atlas Iron retreated 3.7% to $1.55 and Mount Gibson Iron shed 3% to 79.5c.

Gindalbie Metals was 3.1% weaker at 31c while BC Iron dropped 2.9% to $3.40.

Meanwhile, Blackthorn Resources had a good day after gaining 7.5% to $1.44 after reporting more high-grade intercepts at its Mumbwa project.

Mirabela Nickel gained 2.8% to 54.5c, while Mineral Deposits fell 3.6% to $3.76.

Shares in mineral sands producer Iluka Resources closed 3.7% or 35c higher at $9.73, despite reporting lower revenue and production for 2012 and announcing it would idle its Eneabba operation.

Paladin Energy’s annual and quarterly results impressed investors.

The company’s shares picked up 1.7% to $1.17.

AngloGold Ashanti dipped 4.5% to $5.50 and Evolution Mining lost 2.1% to $1.61.