ABS unemployment rate remains steady at 5.7pc in May

Unemployment has remained steady at 5.7 per cent in May with the estimated addition of 17,900 jobs.

The result was slightly above expectations, with a Reuters poll of 15 economists expecting the economy to have added 15,000 jobs and the unemployment rate to remain steady at 5.7 per cent.

The participation rate, the proportion of people in work or looking for it, remained steady at 64.8 per cent

Most economists agree Australia generally needs to create about 20,000 jobs a month to keep the unemployment rate stable.

However, the entire growth in jobs was in part-time work, with full-time work remaining flat.

Economists said the result was in-line with expectations.

"The snap-back in hours worked in the month - despite the strength in employment being concentrated in part-time, suggests sample rotation was the key driver of the decline in April," wrote economist at Deutsche Bank, Phil Odonaghoe.

"Growth in hours worked has slowed since the end of last year - consistent with part-time being the key driver of employment so far in 2016."

Deutsche Bank said it does not see any implications for the Reserve Bank in the figures, and expects a rate cut at the August meeting after the release of second quarter inflation numbers.

The unemployed are increasingly giving up looking for full-time jobs, with the number searching for full-time employment falling 6,200 while those looking for part-time work increased 7,200.

Across the states unemployment fell in New South Wales and Queensland down to 5.2 per cent and 6.4 per cent respectively.

Unemployment rose in Victoria up to 5.8 per cent, Western Australia 5.7 per cent, South Australia 6.9 per cent and Tasmania 6.5 per cent.

Both the ACT and Northern Territory's trend unemployment edged down to 3.8 per cent and 4.1 per cent respectively.

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