The national jobless rate stuck at 3.5 per cent, with 14,600 jobs disappearing from the economy.
The participation rate lifted 0.2 percentage points to 66.6 per cent for the month of December.
"With employment decreasing by around 15,000 people, and the number of unemployed increasing by 6000 people, the unemployment rate remained steady at 3.5 per cent," ABS head of labour statistics Lauren Ford said.
The December labour force report follows several months of ultra-low unemployment as reported by the Australian Bureau of Statistics.
The November unemployment rate was revised from 3.4 per cent to 3.5 per cent, while the participation rate increased to 66.8 per cent.
As expected, the bureau's final employment report for the year revealed persistent demand for workers.
Treasury analysis released this week revealed the relative strength of the jobs market, with Australia's employment growth outstripping several advanced economies between May and November.
Construction, retail, and accommodation and food services led Australia's surge in employment.
For the Reserve Bank, another strong labour market read will keep pressure on wages and price growth.
The central bank started hiking interest rates in May in response to surging inflation.
The monthly consumer price index revealed re-accelerating inflation in November, with the indicator lifting 7.3 per cent over 12 months compared to the softer 6.9 per cent annual result in October.
Another cash rate hike is broadly expected when the RBA holds its first meeting of the year in February.
