Australian Bureau of Statistics data released on Thursday showed that after revisions, the unemployment rate had fallen to 4.9 per cent in December - originally reported as 5.0 per cent - marking the first fall below five per cent in nearly two years.
Still, while total employment fell by an unexpected 10,100, this was largely the result of a large decline in part-time workers.
The bureau said that 57,700 part-time jobs were lost in February, but were almost matched by a hefty 47,600 rise in full-time employment.
Economists had forecast a further 20,000 increase in the number of people employed, with the unemployment rate staying at 5.0 per cent.
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The bureau said there was no significant operational difficulties conducting the monthly survey in the wake of this summer's natural disasters.
Despite fears of a collapse in the Queensland labour market because of floods and cyclone, its unemployment rate was unchanged at 5.6 per cent.
However, the jobless rate dropped to 4.2 per cent from 4.6 per cent in Western Australia, while it declined to 4.8 per cent from from 4.9 per cent in NSW.
It also fell to 5.0 per cent from 5.1 per cent in Victoria, and it tumbled to 5.6 per cent from 6.4 per cent in Tasmania.
In the Northern Territory it was 2.3 per cent versus 2.4 per cent.
In South Australia the unemployment rate jumped to 5.8 per cent from 5.4 per cent, while in the ACT it rose to 3.5 per cent from 3.4 per cent.
