FXStreet (Mumbai) - The Australian Bureau of Statistics today reported a drop in unemployment rate for the second straight month in November. The seasonally adjusted unemployment rate dropped to 5.8 per cent, lower than the 5.9 per cent unemployment recorded in October. The November unemployment rate was the lowest since May 2014. Expected unemployment rate for last month was 6 per cent. The surprise fall in unemployment caused a small stir in the market with the Australian dollar jumping almost one US cent to 73.32 US cents post the release of the data. 71,400 new jobs have been added, the largest gain since March 2012. Number of unemployed people on the other hand fell by 2,800. 41,600 full-time positions and around 29,700 part-time positions were created last month. Today’s data highlighted an improvement in the domestic economy. However concern about slowdown in the Australia’s trading partner China still remains. The unemployment rate in Queensland fell from 6.1 per cent to 5.9 per cent. In New South Wales it fell from 5.5 to 5.2 per cent; in South Australia it dropped from 7.6 to 7.3 per cent. In Victoria the unemployment rate rose significantly from 5.6 to 6.2 per cent. Western Australia also saw a rise in the jobless rate from 6.4 to 6.6 per cent. Prime Minister Malcolm Turnbull feels the figures are "something to be very pleased about". Employment Minister Michaelia Cash is also extremely pleased with this drop in the unemployment rate, which came 11 months after unemployment reached 6.4 per cent in January. Volatile data The jobs data is however being deemed as volatile by analysts who believe rise in jobs gain were due to a rotation in the groups of people who are hired for the monthly reading. Never the less this fall in unemployment does signify an overall strengthening of the labour market. Barclays chief economist for Australia Kieran Davies told AFP admits that there is a possibility that the headline number is overblown. He is however confident that “there's still an underlying improvement in the jobs market, and you can see it over a whole bunch of official and private indicators." Rebalancing of the economy in process Australia’s economy at this juncture is very vulnerable as it trying to rebalancing its economy away from the resource sector. As the impact of the mining sector boom ebbs, it is important to monitor the significant indicators to gain an insight into the performance of the economy and also gather clues on the central bank’s future course of action. The RBA has slashed interest rates by 275 basis points since November 2011. The objective was to encourage non-mining sector so that it can offset the losses incurred on declining investment in the resource sector. However it must be noted here that the rebalancing of the economy away from the service sector is yet to yield results. Slowdown in China also continues to worry the resource rich nation. The Australian economy will have to continue to struggle against these challenges to ensure sustainable growth. For more information, read our latest forex news.