The unemployment rate has fallen to its lowest rate in nearly six years, spurring the Turnbull government to claim credit for the underlying economic performance.

The figures show the drop from 5.4 per cent to 5.3 per cent, its lowest level since November 2012, is mostly attributed to 10,000 fewer people looking for work.

Overall, employment actually fell by 3900 jobs, due to a 23,000 drop in part-time jobs. The good news is most of these were cancelled out by the addition of 19,000 full-time jobs.

The difference between the loss of the 3900 jobs and the reduction in the size of the labour force, meant the unemployment rate came down, particularly in Victoria, which dropped sharply from 5.6 per cent to 5 per cent.