The labour force figures, unveiled by the Australian Bureau of Statistics on Thursday, wrong-footed market economists, who had been tipping the jobless rate to hold steady at 4.1 per cent.
But the extra 48,900 jobs added to the economy was stronger than consensus expectations of a 20,000 increase.
The number of unemployed people grew by 35,000.
That contributed to the 0.2 percentage point increase in the unemployment rate, ABS head of labour statistics Sean Crick said.
"This month we saw fewer people who were unemployed and waiting to start a job in January move into employment in February, compared to recent Februarys," he said.
"We also saw more people remaining unemployed this month compared to recent Februarys."
There were also fewer people leaving jobs to retire compared to a year ago, contributing to a 0.2 percentage point increase in the participation rate to 66.9 per cent.
Oxford Economics Australia revised up its prediction for near-term unemployment, which it now expects to peak just shy of 4.6 per cent in early 2027.
The labour market was showing early signs of slowing down in February, Oxford Economics' Harry McAuley said.
"The key risk to the outlook is the severity and length of disruptions to key oil and gas routes in the Middle East," he said.
"A sustained period of high energy costs may require a stronger policy response from the RBA, which would resonate through the employment figures."
Part-time employment rose by 79,000 people, while full-time employment fell by 30,000 people.
The rise in the unemployment rate could ease Reserve Bank concerns that there is not enough spare capacity in the jobs market, contributing to inflation.
However, the strong growth in hiring and high participation rate shows the labour market remains robust.
Treasurer Jim Chalmers said Australia was one of a few countries that had been able to keep people in jobs in the face of extreme global uncertainty.
"Our resilient labour market is one of the reasons we are well placed and well prepared to manage the impacts of the conflict in the Middle East, but we will not be immune," he said in a statement.
"We've made a lot of progress together on the economy but the job's not done because people are still under pressure, which is why the government continues to focus on helping with the cost of living with two rounds of tax cuts to come this year and next year."
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