Australia's unemployment rate fell to 5.72 per cent in July, continuing the downward trend seen since the beginning of 2015. It now stands at the lowest level since September 2013.

But that doesn't tell the full story about the current state of the labour market.

Unemployment is highest in Queensland's outback. Credit:Joe Armao

At 64.8 per cent, labour market participation remains below the levels seen in previous years, while the vast bulk of the employment growth over the same period coming from part time workers.

Labour force underutilisation, combining unemployed and underemployed workers, is still elevated at 14.2 per cent, while youth unemployment is now starting to edge higher again, rising from 12.2 per cent in January to 13 per cent in July.