Australia's unemployment rate has fallen in September, down to 5.2 per cent, official figures show.

Australian Bureau of Statistics monthly data show the jobless rate fell from a 10-month high of 5.3 per cent in August, in seasonally adjusted terms.

The number of jobs created during the month was more than double what was expected.

In total 20,400 jobs were created, 10,800 of which were full-time positions.

The number of people looking for work remained steady at 65.6 per cent.

The better than expected result saw the Australian dollar jump more than half a cent to more than $US1.02 just before 12pm (AEDT).

Most economists had been tipping the rate to remain unchanged or even rise.

Prime Minister Julia Gillard welcomed the figures, saying they were no accident.

"It's not a matter of autopilot; it takes careful and continued policy work and reform," she said.

"It is no accident that our economy today is a resilient economy."

Employers 'uncertain'

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Listen Duration: 3 minutes 35 seconds 3 m 35 s Business editor Peter Ryan looks at the surprise fall in unemployment Download 1.6 MB

ANZ head of Australian economics, Katie Dean, told The World Today that month-to-month jobless data can be volatile, and she still believes the economy is slowing.

"Today's data is not enough to offset the weakening that we've seen in employment growth over the last six months," she said.

"So whilst it is a welcome reprieve, it doesn't change the story that the labour force over the last six months has still weakened considerably from where we were six months ago.

The European debt crisis and rocky global markets also are causing uncertainty for employers, Ms Dean says.

"That is just leading to a bit of a curtailment in hiring intentions for the moment," she said.

Queensland saw the largest fall in unemployment, down from 6.3 per cent to 5.4 per cent, with Western Australia and Tasmania also experiencing declines.

But the number of people out of work rose in New South Wales, Victoria and South Australia, which saw the greatest jump in unemployment, up to 5.6 per cent from 5 per cent in August.

Employment was stable in the ACT and the Northern Territory.