JOB ADS REBOUND AHEAD OF RBA MEETING

Written on the 4 May 2015

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."


Latest News

NEW CLASS OF EDUCATION NURTURES ENTREPRENEURS OF TOMORROW

THE rise in youth unemployment has affirmed the importance of entrepreneurship education, and south-east Queenslan...

DUET GROUP SUBJECT OF $7.3 BILLION TAKEOVER OFFER

HONG Kong's Cheung Kong Infrastructure has launched a $7.3 billion cash bid for one of Australia's largest en...

G8 SHARES BUOYED BY FORECAST PROFIT RECOVERY

CHILDCARE centre operator G8 Education (ASX:GEM) has revealed it is on track to post a pre-tax profit of up to $16...

BELLAMY'S FINDS EXPORTING BABY FORMULA INTO CHINA IS NO CHILD'S PLAY

BELLAMY'S (ASX: BAL) shares have suffered a 40 per cent drop in value today after the company hit a regulatory...

Related News

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

BIG W CEO QUITS AFTER 11 MONTHS

SALLY MacDonald has resigned as chief executive of BIG W ending her tenure at the helm of the struggling discount ...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter