The jobs market has stared down a slowing economy, with the unemployment rate edging below 5 per cent in February.

Key points: 4,600 jobs were created in February, down from the 39,100 in January

4,600 jobs were created in February, down from the 39,100 in January Unemployment rose in NSW and Victoria, and fell in other states and territories

Unemployment rose in NSW and Victoria, and fell in other states and territories The slide in the unemployment rate under 5pc takes some pressure off the RBA to cut interest rates

In seasonally adjusted terms, the unemployment rate came in at 4.9 per cent, its lowest level since June 2011.

However, the rate of job creation slowed with 4,600 new jobs over the month, a marked step down from the 39,100 jobs in January.

The decrease in unemployment was largely driven by fewer people looking for work, with the participation rate slipping.

While the headline seasonally adjusted figure dropped, in trend terms the unemployment rate held at 5 per cent and measures of slackness in the labour market barely moved.

The underemployment rate— the measure of people in work but looking for more hours — held at 8.1 per cent, while the underutilisation — combining unemployment and underemployment — eased marginally.

There was also a significant pay back from the 64,000 full-time jobs created in January.

Full-time employment in seasonally adjusted terms fell by 7,300, while part-time work rose by 11,300 positions.

Despite this, hours worked increased by 3.1 million hours, or 0.2 per cent over the month.

While the Reserve Bank will be heartened by the figures, there may be concerns given the slowdown of the economy in the second half of 2018 was heavily weighted to sectors with large workforces, such as retail and construction.

The immediate future is also clouded with forward looking indicators such as NAB business survey's employment index as well as job ad data pointing to a slowdown in jobs growth.

Mixed result

CommSec's Ryan Felsman welcomed the result, saying unemployment was set to stabilise around decade long lows.

"Underneath the bonnet, there was some weakness," Mr Felsman noted.

"The participation rate fell a little and full-time jobs were down after a blockbuster result in January. Seasonality may have played its part."

Indeed economist Callam Pickering said the figures for February were decidedly mixed, with unemployment dipping but employment growth, particularly full-time work, weaker than expected.

He said the result should be put in some perspective and the survey was notoriously volatile.

"Monthly employment growth averaged more than 30,000 over the previous six months and, in light of that, a poor month is not unexpected," Mr Pickering wrote.

"Nevertheless, with market sentiment so bearish, many will view the softer employment figures as evidence that the labour market is beginning to turn, following in the footsteps of economic growth, house prices and the retail sector.

"The market is all but convinced that rate cuts are on their way, almost fully pricing in a cut by August. But policymakers may require more convincing."

Unemployment rises in NSW and Victoria

There were also mixed results across the nation, with the drivers of the recent jobs boom — News South Wales and Victoria — seeing the jobless queues lengthen after pushing down to historic lows.

NSW maintained the lowest unemployment rate despite a 0.3 percentage point rise to 4.3 per cent. Victoria's unemployment rate edged up 0.2 percentage points to 4.8 per cent.

Western Australia, Queensland and South Australia all saw significant declines in the jobless rate, but all remain above the national average.

Tasmania still has the highest unemployment rate at 6.5 per cent, despite a 0.5 percentage point fall in February.