JOB ADS REBOUND AHEAD OF RBA MEETING

JOB ADS REBOUND AHEAD OF RBA MEETING

JOB advertising bounced back 2.3 per cent in April after falling for the first time in ten months in March, according to ANZ.

Research from the bank shows job ads have now increased for 18 consecutive months in trend terms, although the pace of growth has slowed since the end of last year.

ANZ chief economist Warren Hogan says the positive position circumstances may halt the Reserve Bank's decision to cut rates this month.

"We continue to expect further monetary policy easing given soft business and consumer confidence, a negative outlook for non-mining investment, and likely further job losses across mining and manufacturing," Hogan says.

"However, a more positive starting point for the labour market, a re-acceleration in investor housing credit and RBA comments that monetary policy is less effective than it has been in previous episodes, cause us to acknowledge that a cut in May might be a line-ball call."

The growing popularity of internet advertising spurred the increase, while newspaper spots fell 2.5 per cent last month.

Queensland reported a 0.7 per cent decline in newspaper ads last month, in comparison to Western Australia at 18 per cent the largest decrease in Australia.

Mild growth in New South Wales, South Australia and Northern Territory was not enough to counteract the trend, with Tasmania also falling 10 per cent.

"The release of the March labour force survey contained revisions which increased employments and lowered the unemployment rate, painting a better overall picture of the labour market," Hogan says.

"But despite this improvement, the unemployment rate is remaining stubbornly higher than the trend increase in job ads would suggest.

"As described in last week's Australian Economic Insight, we believe this divergence is partly due to a high level of job losses in particular sectors, which suggests that job ads may be a more appropriate indicator of labour demand in the non-mining, non-manufacturing sectors at present.

"Retrenchments and strong growth in part-time labour supply may also be driving a reduction in the ability of the labour market to match jobs with workers."

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

Cromwell sells Brisbane head office to Wingate for $108.5 million

Cromwell sells Brisbane head office to Wingate for $108.5 million

As part of its strategy to sell off inessential assets, Brisbane-ba...

Record profits again for TechnologyOne as CEO touts business model resilience in tough times

Record profits again for TechnologyOne as CEO touts business model resilience in tough times

TechnologyOne (ASX: TNE) CEO Edward Chung has affirmed the company ...

John McGrath calls for calm as real estate company forecasts rise in earnings for FY22

John McGrath calls for calm as real estate company forecasts rise in earnings for FY22

Despite recent trading conditions proving disruptive for the reside...

Board exodus gathers pace at The Star after O’Neill resigns as chairman

Board exodus gathers pace at The Star after O’Neill resigns as chairman

The Star Entertainment Group (ASX: SGR) is now on the hunt for a ne...