JOB ADS DECLINE AT SLOWER RATE

JOB ADS DECLINE AT SLOWER RATE

 EMPLOYMENT advertising continued to decline last month, albeit at a slower pace of deterioration.

ANZ’s research shows job advertisements fell 0.3 per cent in January, the lowest rate since early 2012, and down about three per cent during the last six months.

The bank’s chief economist Ivan Colhoun says the stabilisation is promising, but he remains cautious as the holiday trading can affect seasonal adjustment.

“While none of the measures of job advertising or vacancies have shown a convincing upward trend at this stage, they are clearly not falling at the sharp pace seen earlier,” he says.

“This suggests the unemployment rate will remain for some time and may peak in the 5.75 to six per cent range.

“Recent developments in job advertising, as well as in other key economic indicators, suggest the outlook for the Australian economy is becoming more positive.

“Low interest rates are boosting the interest-rate sensitive sectors of the economy, with house prices and building approvals picking up strongly.

“There are now also signs that this is encouraging domestic retail spending, with retail sales growth strengthening notably since last July at an annualised pace of eight per cent.”

Colhoun says they are forecasting reduced resources investment mid-year, creating uncertainty in the labour market.

“After declining very sharply since early 2011, Department of Employment job vacancies data show that the deterioration in mining job ads has slowed considerably, and even improved in some areas, which could suggest some of the decline in labour demand associated with the imminent mining investment wind back may have already occurred.”

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

‘Devastated’ boss of collapsed Pivotal Homes warns that risk has swung against builders

‘Devastated’ boss of collapsed Pivotal Homes warns that risk has swung against builders

The devastated boss of collapsed Gold Coast homebuilder Pivotal Hom...

St Baker affirms commitment to Novonix as he exits board to focus on new fund

St Baker affirms commitment to Novonix as he exits board to focus on new fund

Rich lister and power industry titan Trevor St Baker, the largest i...

Microba strikes up partnership with Midnight Health to deliver personalised health services

Microba strikes up partnership with Midnight Health to deliver personalised health services

After making its debut on the ASX in April, biotech company Microba...

REMI Capital goes from spruiking for investors to $70m collapse in months

REMI Capital goes from spruiking for investors to $70m collapse in months

Just months ago, boutique investment company REMI Capital was encou...