Washington unemployment rate at 4.7 percent

The unemployment rate fell from 5.6 to 5.4 per cent, but largely because of male workers leaving the labour force and no longer being counted as unemployed.

Employment grew by 12,000 positions and the participation rate fell to 65.5 percent, according to Australian Bureau of Statistics data released on Thursday.

The underemployment rate, which is the proportion of people who are working but would like to work more hours, remains below the peak of 8.7 per cent seen in 2017.

Nationally, the unemployment rate dropped from 5.6 per cent to 5.4 per cent. "Job security is still much better than average, but the result confirms the softer tone coming out of the labour market".

The ABS figures come on the same day employment ads company SEEK said it had 10.7 per cent more job ads in May compared with the same month previous year.

But like the national figures, a drop in the participation rate helped bring down the State's jobless rate.

Employment rose by 15,900 people in May on a trend basis, following average monthly growth of nearly 34,000 people a year ago.

The largest decline was seen in WA where employment dropped 1,900. The number of unemployed persons looking for full-time work decreased 11,200 to 494,300 and the number of unemployed persons only looking for part-time work decreased 15,600 to 220,300.

The seasonally adjusted number of persons employed increased by 12,000 persons in May 2018.

Of the states, South Australia's unemployment rate - in trend and seasonally adjusted terms - continues to be only bettered by Victoria and NSW.

The trend participation rate decreased by less than 0.1 per cent to 65.5 per cent in May 2018, after the April figure was revised down.