The Australian economy continues to defy expectations with unemployment continuing to fall.

The jobless rate dropped to 5.5 per cent in April.  WA was the best performing state in the country with the unemployment rate sitting at 4.9 per cent.

Chamber of Commerce and Industry Chief Economist, Aaron Morey, says WA’s result is the best result since July 2014.

“It’s confirmation of what we knew,” he said. “This market is running hot on the back of those global commodity markets and record investment in our local construction sector.”

Mr Morey says the state is not too far away from full employment.

“Bodies like the Commonwealth Treasury and the RBA say you need an unemployment rate of closer to 4 per cent to really start to see that wage inflation.”

The better than expected result has been achieved, even as the Job Keeper scheme came to an end. Federal Treasurer Josh Frydenberg said it proves the government’s strategy is working.

Hear the full interview below.