Providing some relief to the Federal Government from the tiff with miners over the resource tax, the unemployment rate dropped unexpectedly.

But this drop has been termed as fragile by the economists who say that the 5.2% rise is not strongly suggesting any inclination in the interest rate rises later this year, which will be implemented for creating inflation pressures.

The month of May saw the lowest rate of joblessness at 5.15% in 16 months. This decrease was because 26,900 people were employed.

This in turn, resulted in a climb of 36,400 full-time jobs equalized somewhat by the dip in the part-time workers. These figures were released by the Australian Bureau of Statistics on Thursday.

Talking to the Fairfax Radio Network in Perth; Treasurer, Wayne Swan said that the figures were “great” for Australia.

Also, the figures were welcomed by the opposition treasury spokesman, Joe Hockey who said that this calls for Government to coil back the stimulus spending immediately.

Analysts forecast were surpassed by the labor force report. They had predicted that the job rate will increase 15,000 and this will make the unemployment rate 5.4% for a third month.

National Australia Bank Senior Economist David de Garis said that the results were very good with no indication of any “devil in the detail”.

NSW and Western Australia headed the drop with 5.2% and 4.1%, respectively.