The headline unemployment rate held steady at 4.1 per cent with nearly 18,000 jobs created in January, Australian Bureau of Statistics data released on Thursday showed.
That's slightly below the expectations of economists - who predicted 20,000 jobs would be created - and weaker than December's bumper print.
The number of people in full-time work increased by 50,000, but was partly offset by a 33,000-strong fall in the number of part-time employees.
The jobs market remained tight and would likely be a factor in the Reserve Bank's next interest rate decision in March, said EY chief economist Cherelle Murphy.
"In our view, the Reserve Bank will raise the cash rate further, most likely in the first half of this year to combat inflationary pressures, including those stemming from the labour market," she said.
That view was supported by Global X ETFs strategist Mark Jocum, who warned the jobs figures could bolster the case for more interest rate rises in the coming months.
"This was best read as a cool-down after December's print, rather than a sudden loss of momentum," he said.
"With employment remaining tight and inflation still uncomfortably high, the RBA's dual mandate remains a delicate balancing act."
Treasurer Jim Chalmers said the jobs market was remaining resilient during a challenging economic period.
"The unemployment rate has remained steady at 4.1 per cent, meaning it continues to remain at very low levels by historical standards and participation remains close to record highs," he said.
Opposition workplace relations spokeswoman Jane Hume said the figures showed Australians were working harder while real wages went backwards.
"Australians are doing their bit; they're turning up to work, they're taking on extra hours and in many cases they're juggling multiple jobs, but they're still falling behind," she said.
The Reserve Bank has been warning about tightness in the nation's labour market - a fear the January figures will do little to allay.
A number of other crucial data points will be released before the RBA's next interest rate decision, including inflation figures later in February.
The central bank raised the official cash rate by 25 basis points during its meeting at the start of February, imposing more pain on borrowers in a bid to tackle rising inflation.
Wage figures released on Wednesday showed pay packets were not keeping up with inflation.
Seasonally adjusted wages rose to 3.4 per cent for the year to December, but below the 3.8 per cent for annual inflation.
It's the first time there has been a drop in real wages since September 2023.
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