The vibrant labour market in regional areas had driven unemployment rates across regional Victoria to another record low.

Australian Bureau of Statistics figures show that Victoria's regional unemployment rate fell to 2.8 per cent in August - from the previous 2.9 per cent record - and remains the lowest in the nation.

In the Warrnambool and south-west region, the unemployment rate in August was just 1.1 per cent - slightly below last month's 1.2 per cent.

The south-west's jobless rate of 0.9 per cent was singled out by the state government in July when the regional unemployment rate had dropped to 3.2 per cent - the lowest rate in almost 50 years.

The south-west has consistently had the lowest unemployment figures in regional Victoria over the past three months.

The figures come as businesses across the region struggle to find workers to fill workforce shortages.

In comparison, Bendigo measured 1.9 per cent in August with Geelong on 2.6 per cent, Latrobe-Gippsland on 2.7 per cent and Shepparton on 2.8 per cent.

Victoria's regional unemployment rate was well-below the national regional unemployment rate of 3.3 per cent.

In New South Wales and Queensland the rate is 3.2 per cent and in Western Australia it is 3.5 per cent.

The unemployment rate is far below figures more than a decade ago when the regional unemployment rate was a high 6.6 per cent.

The state government said the historic result meant there were now 742,100 regional Victorians in work - an increase of more than 83,000 since November, 2014.

The bureau's regional labour force figures are compiled as a three-month average to smooth out fluctuations.

Treasurer Tim Pallas said the unemployment rate in regional Victoria continued to fall and lead the nation - and that reflected a positive outlook among businesses across the state.

"Regional areas have shown the strength of their economies and communities throughout the pandemic and have rebounded strongly," Mr Pallis said.

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