Australia's unemployment rate has eased to 5.2 per cent in July, with 14,000 jobs added.
The fall in unemployment was due to an upward revision in June's figures, which were originally slated at 5.2 per cent by the Bureau of Statistics but corrected to 5.3 per cent in the latest release.
The more stable trend unemployment rate remained steady at 5.2 per cent.
The fall in unemployment was generated by the addition of 9,200 full-time jobs and 4,800 part-time positions.
It was also assisted by a slight dip in the proportion of people in work or looking for work to 65.2 per cent.
Economist forecasts were centred on 10,000 jobs having been created, which was expected to leave the unemployment rate at 5.3 per cent.
The Commonwealth Bank's chief economist Michael Blythe says it is a pretty solid recovery after poor employment figures last month.
"The labour market has ticked the box on the side that says the glass is half full," he told Reuters, echoing the title of a recent speech by Reserve Bank governor Glenn Stevens.
"It is obviously generating just enough jobs, despite losses in some areas, to keep unemployment constant.
In the current environment, that's not a bad outcome." The figures were also cautiously welcomed by the Federal Opposition.
The Coalition's employment spokesman Senator Eric Abetz says it is always positive when the unemployment rate drops.
"But I do sound this note of caution that it is against the government's own budget predictions that unemployment will in fact rise, but let's celebrate it while it's down," he said.
Hours worked also rose by 13.4 million from a revised June estimate to 1,265 million in July.
UBS interest rate strategist Matthew Johnson says the Reserve Bank would probably need to see unemployment rise solidly before cutting rates again.
"The unemployment rate remains lower than what the Reserve Bank expected, so right now, they are just waiting for more information," he told Reuters.
"If unemployment goes up for the next two months and we end up at 5.5 percent, the RBA may be thinking about cutting rates." The Australian dollar ticked up about 0.1 of a US cent immediately after the figures, but had gained strongly for several minutes prior to the release.
By 11:46am (AEST) it was trading at 105.88 US cents.
State by state The unemployment rate in New South Wales rose from 5.1 to 5.2 per cent in seasonally adjusted terms, although the proportion of people in work or looking for work also increased.
Victoria's unemployment rate fell slightly from 5.5 to 5.4 per cent, however the proportion of people in work or looking for work also declined.
Queensland's seasonally adjusted unemployment rate jumped from 5.3 to 5.8 per cent, but the proportion of people in work or looking for a job also rose to 66.5 per cent.
South Australia's unemployment rate tumbled from 6.4 to 5.4 per cent, seasonally adjusted, but that was due to a fall in its participation rate to a very low 62.8 per cent.
Western Australia's unemployment rate rose to 3.6 per cent in July, despite the proportion of people in work or looking for work falling to 68.3 per cent.
Tasmania's unemployment rate eased slightly, with the small state's more reliable trend figures dropping from 7.1 to 6.9 per cent.
The Northern Territory's trend unemployment rate remained unchanged at 4.1 per cent, while the ACT's unemployment rate crept up to 3.7 per cent due to an increase in the proportion of people participating in the labour market to 72.7 per cent.