The unemployment rate held steady at 4.1 per cent in May, in line with forecasts, despite a surprise fall in jobs.
Some 2,500 jobs were lost from the economy despite forecasters tipping a 20,000 employment gain, according to Australian Bureau of Statistics figures.
There was a surprise surge of 89,000 jobs in April.
The participation rate — which reflects the proportion of the working-age population that is actively participating in the labour market — fell 0.1 per cent to 67 per cent.
Australia's unemployment rate has stayed below pre-COVID averages, despite elevated interest rates, in part because the labour market has been underpinned by strength in government-funded employment, such as in health and aged care.
Salaries go up in the month of May, data shows
Meanwhile, listed salaries increased by 3.6 per cent in the year to May, according to a report by online jobs site Seek.
But monthly growth in May was just 0.2 per cent, the smallest one-month increase since October.
Seek senior economist Blair Chapman said the increase in advertised wages was welcome.
"The growth in average advertised salaries is currently outpacing living costs, which is good news for those switching employers as they are likely gaining a real wage increase."
