Despite unemployment remaining at a near two-year low, both sides of politics acknowledge more work must be done to get more than 720,000 Australians into jobs.
New figures show the unemployment rate remained at 5.8 per cent in December, following an unexpected drop to that level in November.
The number of people employed fell by 1000 in December, below market expectations of around 10,000.
Employment Minister Michaelia Cash said the figures reflected steady improvement in the labour market, with full-time employment at a record high of 8,228,700.
"Total employment increased by 301,300 over the 2015 calendar year, the largest rise recorded since the 2006 calendar year."
Youth employment fell to its lowest point since July 2013 to 12.1 per cent in December.
However, Senator Cash said the government remained "acutely" aware 727,500 Australians remained unemployed.
Labor slammed the figures as a "disappointment" with opposition workplace spokesman Brendan O'Connor blaming job creation on the falling Australian dollar.
"The government's can't claim anything there, because, of course, that's nothing to do with them," he told reporters in Sydney on Thursday.
Mr O'Connor said the 5.8 per cent jobless rate still meant too many Australians were unemployed - 41,000 more than at the 2013 election.
"Whilst the Government likes to crow about its efforts, it's fair to say they have failed Australians," he said.
HSBC chief economist Paul Bloxham said the figures add to the case for the Reserve Bank of Australia to keep the cash rate on hold.
"Growth is rebalancing and it is creating jobs, mostly in services sectors," he said.
"At the same time, growth is still below trend."
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