The construction sector has passed manufacturing to become Australia's third largest employer.
The Australian Bureau of Statistics quarterly labour force data shows health care and social assistance remains the largest employer with over 1.2 million workers.
This is followed closely by retail trade with 1.18 million employees and construction with just over one million.
CommSec chief economist Craig James said it's clearly a red letter day for the construction sector.
"For the first time there are now more people employed in construction than manufacturing. Amazingly just a decade ago manufacturing had more than 400,000 workers than the construction sector, but strong population growth and China-driven projects have contributed to a sharp lift in building activity and demand for construction trades," he said.
The ABS data shows that 37,200 jobs were created in the transport, postal and warehousing sector in the three month to May.
The mining sector continues to significantly outperform other sectors, with the number of employees in the sector growing by 17.8 per cent over the past year.
"With the GFC clearly in the rear-view mirror, mining, construction and transport have returned to their key roles as drivers of the Australian economy," said Mr James.
However Mr James said the federal government needed to quickly resolve the resource super profits tax stand-off with the mining sector to prevent growth stagnating.
"And it's not just the mining sector at risk with expansion in the sector fundamental to job growth and activity in construction and transport sectors," he said.
