The share market struggled on a day that saw falls in most sectors, the steepest seen in energy and retail shares.
The All Ordinaries index lost a third of a per cent to close at 4,516, while the ASX 200 closed a quarter of a per cent lower at 4,509.
The mining heavyweights managed gains though; Rio Tinto rose 1 per cent and BHP Billiton rose 0.4 per cent.
But gold miners were under pressure after spot gold prices dropped.
Australia's biggest gold miner, Newcrest, lost 1.8 per cent to close at $24.10.
The big four banks also closed in the red; the Commonwealth Bank lost 1.2 per cent to close at $60.36 after touching a five-year high yesterday.
The glow of the interest rate cut has worn off the retail sector.
Wesfarmers, the owner of Coles, was one of the only major retailers to rise, closing a third of a per cent higher.
Myer and David Jones both lost more than 1.5 per cent.
Bureau of Statistics figures show there was an unexpected fall in the unemployment rate last month, from 5.4 per cent to 5.2 per cent.
But the result was driven by a fall in the participation rate and all the jobs created in the month were part-time positions.
Shares in the Ten Network remained in a trading halt, as the embattled TV network held its annual general meeting in Sydney.
Ten hopes to raise about $230 million to pay down debt by issuing four new shares for every five current investors hold.
The shares will be offered at a price of 20 cents, well below its last close of 32.5 cents.
Ten shares are down 59 per cent this year.
The Australian dollar jumped against the greenback after the unexpected drop in the unemployment rate.
It had since settled back a touch and about 5pm (AEDT) was buying 104.6 US cents, 80.1 euro cents, 86.3 Japanese yen and 65 British pence.
Spot gold dropped to $US1,689 an ounce, West Texas crude slipped to $US87.35 a barrel, while Tapis crude was worth $US114.10 a barrel.