Powered by MOMENTUM MEDIA
subscribe to our newsletter
Job ads down, but more employment expected: ANZ

Job ads down, but more employment expected: ANZ

The number of job advertisements in Australia and New Zealand fell by 0.7 per cent between January and February 2017, but the rate of unemployment is expected to improve later this year, according to ANZ Research.

Analysis of job advertisements across the continent revealed that there were 165,643 job ads placed in February 2017, down 0.7 per cent on the previous month (seasonally adjusted). This followed a solid rise of 3.9 per cent in January.

On an annual basis, this brings job ad growth to 6.9 per cent year-on-year, down from 7.1 per cent the month before.

Advertisement
Advertisement

Further, ANZ Research found that the trend growth in job ads eased to 0.4 per cent in February, after averaging 0.6 per cent month-on-month growth over the last eight months.

The annual trend growth rate now stands at 6.6 per cent, up from 6.1 per cent as at the end of January.

Despite the reduction in the number of jobs being advertised, the head of Australian economics at ANZ, David Plank, said that he expected unemployment to drop later this year.

He commented: “After a strong rise in January, job ads fell slightly in February. Some moderation in job ads is not unexpected given the strong January result and may reflect the tricky nature of seasonal adjustment at this time of the year.

“The unemployment rate has been stuck at around 5.75 per cent since early 2016. Moreover, much of the employment growth over 2016 has favoured part-time rather than full-time jobs, implying a considerable degree of slack in the labour market. This is likely to weigh on wage growth and has the potential to delay the return of underlying inflation into the 2-3 per cent target band beyond late next year…

“Looking ahead, strength in business conditions, firms’ profitability and an increase in capacity utilisation all point to an improvement in labour market conditions in our view. Overall, we expect the unemployment rate to slowly edge downward through 2017.”

[Related: RBA: ‘We do not expect inflation to fall further’]

Job ads down, but more employment expected: ANZ
mortgagebusiness
  • 23
    Days
  • :
  • 07
    Hours
  • :
  • 54
    Minutes
  • :
  • 01
    Seconds

EARLY BIRD CLOSING SOON
Have you secured yours?

Latest News

Stagnant housing market activity is expected to prolong the stay of borrowers in arrears, with the forecast fall in home values to be among...

The non-bank sector is expected to “lead the way” in 2019, after issuing more than 60 per cent of new home loans in 2018, according to S...

The volume and value of new residential buildings fell in the September quarter 2018, reflecting the “softening” housing market the HIA ...

FROM THE WEB
podcast

LATEST PODCAST: How a softening property market will impact the mortgage sector

Is enough being done to ensure responsible lending?