The Australian Bureau of Statistics announced today an extra 49,500 people were hired in September, more than double the 20,000 jobs predicted by analysts.

The rise in employment was driven by an increase in full-time employment, leaving Australia's unemployment rate unchanged at 5.1 per cent in September.

Full-time jobs rose by 55,800 to 7.984 million in September, offsetting a fall of 6,300 part-time positions during the month.

The participation rate, which is the proportion of people in work or looking for work, was 65.6 per cent, up from a downwardly revised 65.4 per cent in August.

The figures were "really remarkable", according to Macquarie senior economist Brian Redican.

"When you've got rapidly rising employment and a rising participation rate it really underlines just how strong the economy is right now. And there's a 55,000 increase in full-time jobs - it doesn't get much better than that," he said.

But some analysts are concerned that a further drop in the jobless rate would take it to lows that have bred inflationary pressures in the past.

"(The government's) fiscal settings are no longer appropriate," Shadow treasurer Joe Hockey said in a statement.

"They were put in place during a time when the economy faced potential downside risks."

"Now that the economy is running close to Treasury's definition of full employment, the government's fiscal policy settings must be recalibrated."

Australia's unemployment rate is significantly lower than the US, Europe and Canada, where the unemployment rate is close to 10 per cent.

Economists say the Australian job market performed better than those other advanced economies because employers were battling a skills shortage prior to the global financial crisis.