The Australian Bureau of Statistics survey showed the unemployment rate for Wollongong, Shellharbour and Kiama jumped 3.2 per cent to 10.5 per cent between September and October.

IRIS Research executive director Simon Pomfret said: "To jump 3 percentage points in a month is quite surprising based on other indicators.

"That's saying (we've lost) 9000 jobs in a month and unemployment has gone up by 3000 people."

Mr Pomfret said the jobless rate flew in the face of positive indicators, including increasing job ads and higher consumer and business confidence.

The national jobless rate is 5.8 per cent while the state figure is 6.1 per cent. "The national figures did go up last week but only slightly," Mr Pomfret said.

In March he predicted the region's jobless rate would hit 10 per cent within a year.

Yesterday, his prediction was realised with figures showing the region's labour force participation rate had dropped to 52.6 per cent.

"The raw numbers are saying we've lost 25,000 jobs since the middle of last year," Mr Pomfret said. "It's huge if you believe those raw numbers."

One factor contributing to the region's latest jobless rate could be the result of work on BlueScope Steel's No 5 blast furnace and sinter plant finishing.

A consistent unemployment rate of 10 per cent has not been seen in the Illawarra since the early 1990s.