Unemployment rate falls to 6.8 per cent as jobs surge in Victoria

Australia's unemployment rate has dropped to 6.8 per cent on the back of a strong jobs market recovery in Victoria.

Seasonally adjusted figures showed the unemployment rate fell by 0.2 percent in November with 17,300 less people out of work, the Australian Bureau of Statistics (ABS) said.

And 90,000 more people found work people between October and November, while the number of hours worked increased by 2.5 per cent, according to the ABS.

The participation rate - the number of people looking for work - rose by a further 0.3 percentage points, returning to January's historic high of 66.1 per cent.

Bjorn Jarvis, head of labour statistics at the ABS, said this latest data showed an ongoing strengthening in Victoria's labour market.

"Employment in Victoria increased by 74,000 people in November, following last month's increase of 82,000 people," Mr Jarvis said.

The number of hours worked in Victoria has also jumped for the second month in a row, increasing by 5.2 per cent, following an increase of 5.6 per cent in October.

"The gap between Victoria and the rest of Australia has narrowed considerably since September, off the back of two consecutive months of strong recovery in employment and hours," Mr Jarvis said.

Employment in Victoria in November was 2.1 per cent below March, compared to 0.7 per cent in the rest of Australia, while the gap in hours worked remained more pronounced (4.5 per cent versus 0.4 per cent).