Australia's leading trade union is calling for the Labor-led government to provide funding to support the country's long-term unemployed.

The Australian Council of Trade Unions (ACTU) will propose a plan next week for Kevin Rudd's administration to design a new system of employment protection and provide training and support to members of the labor market without jobs.

Modelled on schemes used in Sweden, Denmark and Germany, the proposals have been designed to assist experienced skilled workers who have found themselves on employment benefits because of the global economic downturn.

Sharon Burrow, president of the ACTU, told the Australian that a major structural reform is required.

She said: "With dire predictions of close to a million jobless in the next 12 months, now is the time for a national debate about a new, lasting approach to deal with jobs."

Australia's unemployment rate declined to 5.7 per cent of the population in April, which is 0.3 per cent lower than the figure recorded in March.