While the jobless rate came in line with forecasters' expectations, an extra 76,300 jobs added in June far exceeded consensus estimates of a 15,000 rise in employment.
Thursday's Australian Bureau of Statistics labour force survey painted a picture of a robust labour market.
The surge in jobs was driven by a 47,000 person rise in part-time employment, said Sean Crick, ABS head of labour statistics.
"Part of the growth in employment this month came from those who were waiting to start a job in May. This represents a stronger June movement than has been observed in recent years," he said.
"We also continued to see higher numbers of people remaining employed this June, following elevated levels in the recent few months."
The participation rate rose by 0.3 percentage points to 67 per cent - the highest level since July 2025.
While the nation's labour market has been gradually softening over the past year, the Reserve Bank may not be convinced there is enough slack in the economy to kill off the prospect of more rate hikes.
A re-escalation in the Middle East conflict in recent weeks has halted traffic in the Strait of Hormuz once more and sent the Brent oil price benchmark soaring back towards the $US100 a barrel mark.
That risks reigniting inflation pressures as well as diminishing hiring activity for Australian firms, posing a double-edged dilemma for the RBA.
Job ads figures released by online employment marketplace SEEK showed advertised roles fell 0.9 per cent in June and are now 5.8 per cent lower than 12 months prior.
In minutes from the monetary policy board's June meeting, members noted that while the unemployment rate was weaker than had previously been expected, other indicators such as the underemployment rate were still resilient.
With renewed conflict in the Middle East threatening to reignite oil prices and inflation, markets have slashed the odds of more rate hikes in 2026.
Ahead of the release, financial markets were pricing in the chance of an August rate hike at 25 per cent. The chance that the RBA would hike once more by year-end was priced at 84 per cent.
