The benchmark S&P/ASX200 index ended Thursday down 23.3 points, or 0.28 per cent, to 8,330.3, while the broader All Ordinaries dropped 23.5 points, or 0.27 per cent, at 8,586.9.
The ASX200 had been up by as much as 0.3 per cent but plunged 25 points in two minutes after the Australian Bureau of Statistics released its November jobs report.
Employment rose 36,000 - 10,000 more than economists' consensus estimate - while the number of unemployed fell 27,000, reducing the unemployment rate from 4.1 per cent to 3.9 per cent.
Betashares chief economist David Bassanese called it a "blockbuster" labour market report that meant an interest rate cut in February was off the table unless the fourth-quarter inflation readout comes in very low, which Mr Bassanese said seemed unlikely.
Nine of the ASX's 11 sectors finished lower, with just financials and tech higher.
The interest rate-sensitive property sector was the biggest mover, dropping 1.1 per cent as developer Mirvac fell 2.9 per cent and Westfield owner Scentre Group retreated 2.0 per cent.
In the heavyweight mining sector, Syrah Resources had a dismal day, plummeting 28.3 per cent to a more than decade-low of 19c after the graphite producer declared force majeure at its Balama graphite mine in Mozambique, an East African country racked by civil unrest since a disputed election in October.
The protests mean the company is in default on a $US102 million loan from the US Department of Energy and a $US150 million loan from the US International Development Finance Corporation, with Syrah saying it was engaging with the agencies on the defaults.
Elsewhere in the sector, BHP dropped 0.5 per cent to $41.79 while Forescue rose 0.6 per cent to $20.22 and Rio Tinto added 0.3 per cent to $124.15.
In the industrial sector, Ventia Services Group plunged 22.6 per cent to a 10-month low of $3.33 and Downer EDI retreated 6.0 per cent to a three-month low of $5.37 after the Australian Competition and Consumer Commission said it would file cartel conduct charges against subsidiaries of the two companies, alleging they acted to fix prices on billion-dollar service contracts for more than 200 Australian Defence Force bases.
Downer's Spotless Facility Services subsidiary said it would defend the charges, while Ventia was reviewing them.
In the consumer discretionary sector, Peter Warren Automotive slumped 10.7 per cent to an all-time low of $1.50 and Eagers Automotive dropped 5.7 per cent to $11.42 after Peter Warren said it expects to make a first-half profit of just $6 million to $8 million, after turning a $56.8 million full-year profit in 2023/24.
Australia had a significant oversupply of new vehicles, while cost-of-living pressures meant there was less demand than in 2023, Peter Warren said, adding it was "aggressively" cutting costs in response.
In the financial sector, the big four banks had a mostly quiet day, with Westpac the biggest mover in advance of its annual general meeting on Friday.
Shares in Australia's oldest bank dropped 0.5 per cent to $31.96, while CBA was flat at $157.52 and ANZ and NAB both edged 0.1 per cent higher, to $29.12 and $37.62, respectively.
The Australian dollar jumped to a two-day high after the jobs report.
Just after 5pm, the Aussie was buying 64.18 US cents, from 63.72 US cents at the close of business on Wednesday.
ON THE ASX:
* The benchmark S&P/ASX200 index on Thursday fell 23.3 points, or 0.28 per cent, at 8,330.3
* The broader All Ordinaries dropped 23.5 points, or 0.27 per cent, to 8,586.9
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 64.18 US cents, from 63.72 US cents at Wednesday's ASX close
* 97.87 Japanese yen, from 96.63 Japanese yen
* 61.08 euro cents, from 60.54 euro cents
* 50.27 British pence, from 49.91 pence
* 110.51 NZ cents, from 110.01 NZ cents
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