The jobless rate eased 0.1 percentage point to 6.2 per cent in August, but Treasurer Joe Hockey warns employment data could be volatile in coming months.
The decline in the unemployment rate from 6.3 per cent was expected by economists, but the number of people joining the workforce was stronger than forecast at 17,400.
In trend terms there was no change, with unemployment remaining steady at 6.2 per cent.
The Australian Bureau of Statistics said fall was driven by increases in male full-time employment, and female full-time and part-time employment.
The largest increase was in full-time employment for males, which went up by 10,100.
The seasonally adjusted number of people unemployed decreased by 14,400 to 781,100 in August 2015, the ABS said.
Before the figures were released on Thursday, Mr Hockey warned of some volatility in unemployment numbers because of increased workforce participation after a change to the government’s jobs services program affecting about 40,000 Australians.
The Australian Council of Trade Unions called the unemployment figure a “damning indictment of a do-nothing Abbott Government”.
– with AAP