Increasing work opportunities for Australians in an improving jobs market are helping those reliant on welfare schemes to exit the system earlier.
Historically low figures in long-term benefit recipients disprove the common perception of a nation-wide increase in welfare dependency, research from e61 Institute showed.
The unemployment rate fell to 3.7 per cent in February, down from the 4.1 per cent reported in January.
Government Services Minister Bill Shorten says the low unemployment rate announced on Thursday is a "source for celebration" after a few stressful months.
"I think what we're seeing is inflation is coming down - we're seeing real wages moving," he told the Nine network.
Economist Matt Nolan suggests that a "hot labour market" is encouraging more people on welfare schemes to "exit the benefit and enter more sustainable work opportunities."
Opposition Leader Peter Dutton is concerned that low unemployment numbers are due to people taking on extra jobs in an ongoing cost of living crisis.
"Power prices are up dramatically - insurance bills are up. When people go to the supermarket they're getting less for every dollar," he told the Nine network.
"People are desperate to get that work so that they can make their budgets balance."
More than double the amount of jobs economists expected were added to the economy over February.
The overall number of long-term welfare recipients has fallen to "record lows," according to e61, which bills itself as a non-partisan economic research institute.
"The narrative of increasing dependency is actually quite false," Dr Nolan told AAP.
Roughly 2.7 per cent of those between the ages of 22 and 60 are now long-term recipients of JobSeeker Payments (JSP), e61 says.
"Individuals are being shifted from, or deemed ineligible for, other benefit payments and folded into the JSP," e61 said, describing JobSeeker as a "catch all" program.
More than 50 per cent of people on JobSeeker have exited the scheme after one year, according to e61.
