The jobless rate has unexpectedly dropped, but the good news ends there.
The national unemployment rate did fall to 5.8 per cent in February, but it soared to 7.7 per cent in South Australia.
There were also fewer people overall seeking employment in the month and only a paltry 300 jobs were added to the workforce.
The jobless rate decline came after an equally surprising rise in the rate to 6 per cent in January.
"This shows there continues to be an underlying strength in the Australian economy ... it is certainly trending in the right direction," Employment Minister Michaelia Cash told reporters in Canberra.
The jobless rate was 6.3 per cent 12 months ago.
But opposition employment spokesman Brendan O'Connor said there was nothing to cheer about in the latest labour force report.
"Three hundred jobs in a nation this size in one month is not good news ... people are giving up looking for work," he told reporters.
Liberal SA senator Cory Bernardi conceded the government has to do more for his state.
"We have suffered from 16 years of Labor government in South Australia," he told Sky News.
The slim employment rise was the result of 15,900 new full-time jobs being offset by the loss of 15,600 part-time workers.
The participation rate, which gauges both people in and seeking work, declined to 64.9 per cent from 65.1 per cent.
However, there were positive signs for employment in the manufacturing sector, which is being buoyed by an upswing in new home building and a lower Australian dollar.
The Westpac-Australian Chamber industrial trends survey found new orders, output and employment strengthened during the March quarter.
Australian Chamber of Commerce and Industry spokeswoman Patricia Forsythe said the strong result was continuing the trend of late last year.
"All of that points to an economy that is resilient," she told reporters.
Westpac senior economist Andrew Hanlan said there was an expectation among manufacturers that conditions will remain positive with new orders and output expanding over the coming three months, which will be met with overtime and an increased workforce.
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