The state's unemployment rate has risen to 6.1 per cent, the highest in mainland Australia, compared to 5.6 per cent in December, according to Australian Bureau of Statistics data released on Thursday.
"This month alone there are over 30,000 additional Victorians out of work due largely to the Baillieu government's failures to generate employment through infrastructure projects and its cuts to the public service," Mr Pallas said in a statement.
"Victoria is coming to a standstill with thousands of construction jobs lost and thousands more at risk as big infrastructure jobs finish, with no future plans by the Baillieu government for major projects."
Premier Ted Baillieu said the monthly figures are volatile.
"In December the figures for Victoria show an increase of 14,000 jobs," he told parliament on Thursday.
Mr Baillieu said the Victorian economy is facing significant challenges including a high Australian dollar, the failure of the Commonwealth to change GST distribution, a rise in energy costs caused by the carbon tax and the federal government's failure to deal with an inquiry into construction costs.
Meanwhile, unemployment also rose to 6.1 per cent from 5.8 per cent in South Australia and to 7.8 per cent from 7.4 per cent in Tasmania.
The rate was unchanged at 5.1 per cent in the nation's most populous state, NSW.
The national jobless rate remained steady at 5.4 per cent.