Can the Unemployment Rate ever be 'too low'?

[for TV]

Australia's unemployment rate edged down to 4.4% in May.

This comes after April's uptick to 4.5%, which had surprised economists.

Now, from the RBA's perspective... higher household spending and the joblessness rate edging lower signal the economy might still be running hot... and support the case for the Central Bank to hike rates.

Meanwhile, the youth unemployment rate saw an even larger decrease in May, down 0.6 percentage point to 10.4%.

Overall, 40,000 jobs were added to the economy, driven by part-time employment.

This means the under-employment rate actually edged up 0.1 percentage point to 5.9% in May.

Paul Brennan, from Suncorp, says the latest data hints at a "soft-landing" for the Aussie economy: [PLAY PKG]

And the Aussie dollar picked up XX, on signs of a resilient economy.