Unemployment rate 4.2 in June

Australia's unemployment rate was a seasonally adjusted 4.2 per cent in June, compared to an unrevised 4.3 per cent in May, figures from the Australian Bureau of Statistics show.

Total employment rose by 29,800 to 10,715,700, seasonally adjusted.

Full-time employment rose by 24,000 to 7,664,600 and part-time employment was up 5,800 to 3,051,100.

The participation rate in June was 65.3 per cent, compared with 65.2 per cent in May.

Economists had expected total employment to rise by 10,000, a jobless rate of 4.3 per cent and a participation rate of 65.2 per cent.

The jobless rate in Western Australia dropped to 3.2 per cent from 3.7 per cent in June and in South Australia it fell to 4.8 per cent from 5.0 per cent.

In NSW the unemployment rate fell to 4.6 per cent from 4.7 per cent, in Tasmania it declined to 4.2 per cent from 4.3 per cent and in the Northern Territory is eased to 3.6 per cent from 3.7 per cent.

In Queensland the rate remained at 3.8 per cent and it was also static at 2.6 per cent in the ACT, but in Victoria it jumped to 4.6 per cent from 4.3 per cent.

Commonwealth Bank senior market economist Michael Workman said the jobs figures were "quite strong".

"There was another strong contribution from full-time employment, up 24,000," Mr Workman said.

"The pattern of the past year has been consistent full-time jobs growth around a lot of volatility in part-time jobs."

"A lot of the pessimism about the economy is not warranted, given we are still getting these kind of job results."

Citigroup managing director of economics Stephen Halmarick said strong jobs growth in the resources-driven states of WA and Qld was driving the labour market.

"The key going forward will be how willing people, like those in the outer suburbs of Sydney and Melbourne ... will be to move to where the jobs are in Western Australia and Queensland (where there's) the capital infrastructure," he said.