Victoria's unemployment rate has climbed to 6.1 per cent.
That is up from 5.6 per cent in December, in seasonally adjusted terms.
It is the highest state rise in unemployment in the country.
The Bureau of Statistics figures show there were 30,000 fewer people employed in January compared to December.
Opposition leader Daniel Andrews says Government inaction is to blame.
"[For] 12 months Victoria's had an unemployment rate worse than New South Wales," he said.
"This is what happens when you have a Government that either does nothing, or nothing good. No jobs plan, no energy, no vigour."
The Premier Ted Baillieu blames the high dollar and a range of Commonwealth funding and policy decisions which he says have hit Victoria hard.
But the Federal Employment Minister Bill Shorten says the Baillieu government could create jobs by committing to some new major projects.
"Infrastructure requires commitment from all levels of government, not just saying the feds have got to fix it all," he said.