The RBA could be forced to hike interest rates again next month in order to stem a rise in inflation, with figures showing a marked improvement in the employment rate.
According to the ABS, unemployment decreased 0.2 per cent to 5.2 per cent in May.
Overall employment increased 26,900 to 11,056,700, while full-time employment increased 36,400 to 7,779,700.
In addition, the male unemployment rate decreased 0.3 pts to 5.0 per cent, while the female unemployment rate decreased 0.2 points to 5.3 per cent.
More than 326,000 Australians found work last month, easily replacing the 317,000 who retired or dropped out of the work force.
This latest uptick in employment suggests strong economic growth, which could force the RBA to lift rates when it meets again next month.
The RBA has raised official interest rates six times since last October, taking the official cash rate from the historic lows of 3 per cent to what the central bank considers a more normal rate of 4.5 per cent.