The unemployment rate fell to a lower-than-expected 5.0% in December from 5.1% in November. Economists expected an unemployment rate of 5.1% for the month.
The number of people employed rose by 21,600, compared with an expected 18,000 rise, the Australian Bureau of Statistics said Thursday.
The number of people in full-time work fell by 3,000 in December, while those in part-time work rose by 24,600.
Participation in the workforce fell to 65.6% in December from 65.7% in November and against a consensus expectation of 65.7%.
The ABS measures of underemployment and labor-market underutilization both fell in December.