Jobs Minister Michaelia Cash has described the latest jobs figures as "sensational" as the number of people in employment grew for a record 17th straight month in February.
However, the jobless rate ticked up to 5.6 per cent as more people sought work, encouraged by more than 420,000 jobs having been created in the past year.
Thursday's figures showed 17,500 people joined the workforce in February.
Notably, full-time jobs surged by 64,900 but were partly offset by a drop of 47,400 in part-time workers.
"We have now seen for the first time ever, 17 months of continuous employment growth. That is sensational news for Australians," Senator Cash told reporters in Canberra on Thursday.
She says such strength doesn't happen by accident.
"You need to get the right policy framework in place and that is why we are completely committed to getting our company tax cuts through the Senate."
The government has yet to secure sufficient numbers in the upper house to get the 10-year plan passed.
The Business Council of Australia and 10 of the nation's top employers sent a letter to all senators on Wednesday, promising to invest more in Australia if the cuts are passed which will lead to more employment and stronger wage growth "as the tax cut take effects".
But Labor's employment spokesman Brendan O'Connor was unimpressed by the council's interjection.
"The idea that any senator would believe it was credible that because a letter was sent to them giving an indication that somehow that there might be some follow-through on wages and wage growth, quite frankly is absurd and fanciful," Mr O'Connor told reporters in Melbourne.
"I don't believe senators are so naive to think that's the case."
Economists had predicted an overall employment rise of 20,000 in February with the unemployment rate staying at 5.5 per cent.
But the unemployment rate pushed up as the participation rate of those in or seeking work rose to a record 65.7 per cent.
Despite the solid rise in employment, the number of people regarded as underemployed - in work but seeking extra hours - rose to 1.11 million from 1.09 million three months earlier.
The underemployment rate edged up to 8.4 per cent from 8.3 per cent.
BIS Oxford Economics' head of macroeconomics Australia Sarah Hunter said the rise in the unemployment rate, and with underemployment remaining elevated, shows there is still significant slack in the labour market.
"Given this, it will take at least a year of continued jobs growth before we use up all the spare capacity in the labour market and start to see upward pressure on wage growth," she told AAP.
Earlier this week, the Reserve Bank said forward indicators on employment, such as job advertising, suggest above-average growth can continue over the coming months.
Australian Associated Press