The number of employed slipped 0.6 percent to 3.675 million, with 60.5 percent of those aged 15 and over having jobs, down from 60.9 percent in January.
Full-time employment rose 0.4 percent, while part-time employment declined 1.4 percent last month.
The participation rate in the labour force of those 15 and older fell to 63.9 percent in February from 64.2 percent in January.
Israel's economy is forecast to grow 2.8 percent in 2016.
In the fourth quarter, Israel's jobless rate held steady at 5.3 percent.