Australia's unemployment rate fell to 5.2 percent in October, from 5.3 percent in September, the Australian Bureau of Statistics (ABS) said on Thursday.
The ABS reported the number of people employed in October increased by 10,100 to 11.46 million.
The rise in employment was driven by an increase in full-time employment, up 20,000 people to 8.07 million, and was offset by a decrease in part-time employment, down 9,900 people to 3.39 million, the ABS said.
The labor force participation rate remained steady at 65.6 percent in October.
The forecast was for total employment to rise by 10,000 in October, with the unemployment rate rising to 5.3 percent, according to the median of 15 economists surveyed by the Australian Associated Press.
Australian economists say the unemployment rate for October shows the Australian economy is in a good shape.
"With an unemployment rate of just over five percent, we're doing better than a lot of other parts of the world, but unfortunately that's not being reflected in our share market or our currency," said Craig James, chief economist at Commsec, Australia's leading Internet broker.
James said he did not expect the Reserve Bank of Australia to cut rates again in December.
"Unless Europe implodes, the Reserve Bank's probably not going to change rates at the December meeting," he said.
Meanwhile, global banking giant HSBC chief economist Paul Bloxham said the unemployment rate for October was at pretty low level, saying the Australian economy would continue to create more jobs.
However, he said uncertainties in Europe could disrupt the Australian economy and affect the labor market.