Australia's unemployment rate dropped to 4% in May, with the number of unemployed individuals falling to 598.9 thousand.

Employment increased by 39.7 thousand to 14.4 million, surpassing expectations.

The S&P/ASX 200 Index rose by 0.18% to close at 7,728.4.

Australia's trade surplus exceeded forecasts, while Q1 GDP growth slightly missed estimates and the monthly inflation rate rose to 3.6% in April.

The manufacturing PMI held steady in May, and the services PMI continued to expand.

The RBA May meeting minutes hinted at a potential interest rate increase, with ETFs related to Australia experiencing activity.

Despite the positive job market, challenges remain in the broader economic environment, with the economy growing only 0.1% in the first quarter.

The treasurer emphasized the strength of the labor market amidst economic difficulties, while economists anticipate a slowdown in job creation.

Western Australia reported the lowest jobless rate, with Victoria having the highest.

The RBA is expected to maintain the cash rate in their upcoming meeting, with minimal impact on their decisions from the latest employment figures.