Australia’s unemployment rate has fallen to 4.4 per cent in May, offering a positive sign for the nation’s labour market after it reached a five-year high of 4.5 per cent in April.

The latest figures show employment increased by more than 40,000 jobs during the month, exceeding market expectations and helping to lower the jobless rate.

Economists say the results highlight the continued resilience of the Australian workforce despite ongoing cost-of-living pressures and higher interest rates.

The stronger-than-expected jobs data is likely to be closely monitored by the Reserve Bank of Australia as it balances efforts to curb inflation while supporting employment growth.

While the labour market remains relatively strong, experts caution that economic uncertainty and inflationary pressures continue to pose challenges.

The latest figures suggest Australia’s economy is still creating jobs, even as policymakers work to steer the country through a period of slower growth and elevated prices.