According to the Australian Bureau of Statistics, the country added 10,400 jobs in January but they all came in the part-time sector which increased by 20,200 positions.
Full-time employment dropped 9800 jobs and the number of hours worked was down by 3.9 million.
The participation rate slipped 0.1% to 65%.
The S&P/ASX 200 index dipped into the red in early trading but managed to climb back to black to finish the day higher by 0.3% or 14.7 points to 4935.7 points.
Most sectors closed in positive territory, with basic materials adding 0.4%.
The broader All Ordinaries was 0.3% higher at 4955.8 points.
The Australian dollar declined to its lowest point since November when it touched $US1.0297 but it climbed back across the $1.03 mark before the market closed.
The miners had a mixed day, with majors Rio Tinto and BHP Billiton both posting gains.
Rio closed up 0.9% to $A68.68 while BHP firmed 0.3% to $37.65.
It was a rough day for Whitehaven Coal, which saw shares drop 5.3% to $3.02 on news the government had extended the timeframe for a decision on the Maules Creek mine by three months.
Meanwhile, Northern Star Resources tacked on 6% to $1.05 after releasing high-grade results at its Ashburton project.
Silver Lake Resources also had a strong day, rising 5.9% to $2.52 on no news.
Junior explorer Echo Resources firmed 17.1% to 24c and Xanadu Mines dropped 16.7% to 8c, both on no news.
Bass Minerals shares soared 40% to 1.4c with no releases from the company.
Gryphon Minerals shares dropped 11.5%, or 5.5c, yesterday, prompting a speeding ticket from the ASX.
The company was unable to explain the drop or the volume of trades and shares fell another 3.5% to 41c today.
