This paper employs the Labour Market Accounts framework to explore how employment growth and commuting patterns interacted to determine changes in the spatial distribution of unemployment in Statistical Local Areas within the NSW GMR over the period 1996-2001. Separate regression models (Including control variables) for men and women provide estimates of the relative strength of the relationships between these labour market adjustment responses and the percentage local employment change. The results show that employment growth between 1996 and 2001 has elicited substantial changes in commuting behaviour. Men reveal greater in-commuting and migration responsiveness to employment growth. Unemployment changes in local areas of the Greater Metropolitan Sydney region have been swamped by commuting responses, potentially posing problems for locally targeted employment strategies.