THE unemployment figure will drop further if free trade agreements are negotiated, the government says.
Acting Employment Minister Christopher Pyne said further jobs growth could be expected if free trade agreements with China, Japan and Korea were successful.
An extra 42,000 people entered the workforce last month and the unemployment rate dropped from 6.1% to 6%.
The Australian Bureau of Statistics said the employment increase was driven by rises in part-time employment for women, up 29,800, and full-time employment for men, up 15,900.
The seasonally adjusted figure of the number of people unemployed decreased by 22,000 to 745,200 in May. New South Wales Treasurer Gladys Berejiklian said 15,300 jobs were created in the state last month. In Queensland, the state added 6200 full-time jobs last month and the unemployment rate was steady, at 6.5%.
"Since the Palaszczuk Government came to power there has been an increase month-on-month in full-time job creation," Queensland Treasurer Curtis Pitt said in a press release.
Queensland recorded the largest increase in jobs nationally, on a seasonally adjusted basis.
"Job creation will always be this government's number one priority and we're heading in the right direction," Mr Pitt said.