This paper reviews evidence on causes of unemployment in Australia from disaggregated modelling of the labour market. Three main types of modelling are considered. First, information on unemployment rates of labour force participants with different skills is resented, and analyses that seek to explain why unemployment varies between skill groups are escribed. Second, descriptive evidence on unemployment rates by state and eighbourhood is presented, and possible causes of regional differences in unemployment rates are assessed. Third, descriptive information on the distribution of unemployed persons by duration of unemployment spell is presented, and studies of the determinants of the duration of unemployment spells are summarised.