Bendigo's unemployment rate has now fallen to 1.6 per cent, newly released Australian Bureau of Statistics data suggests.

The state government has trumpeted Victoria's overall unemployment rate of 3.7 per cent.

That is the lowest in nearly half a century, it says.

The tight labour market continues to cause headaches for companies grappling with the lowest unemployment rate since 1974.

Many firms are now struggling to hire workers and employment growth has slowed, the Reserve Bank of Australia confirmed after crunching national numbers for the month of October.

"Job vacancies and job ads are both at very high levels, although they have declined a little recently," governor Philip Lowe has said.

It and inflation is driving wages higher but the bank is closely watching in case they trigger a price-wages spiral.

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