Job ads see turnaround after slumping May

by Adam Smith08 Jul 2014
Job ads have bounced back after a sharp decline in May.

The ANZ job adverisements series has shown a recovery for job ads, following a 5.6% fall in May. Job ads rose 4.3% in June, drovem by a 4.5% increase in online job listings.

ANZ senior economist Felicity Emmett said, while the bounce in ads suggested a confident outlook for the labour market, unemployment was likely to remain flat.

"We expect we’re going to see quite modest gains in employment going forward and while that should keep the unemployment rate from rising much further, it’s probably going to keep it at around the level it is now for some time. We don’t really expect to see any significant improvement in the unemployment rate until later next year," Emmett said.

ANZ chief economist Warren Hogan said in spite of a sentiment that Australia's economy has softened, there are potential economic tailwinds on the horizon.

“The silver lining is that recent indications suggest the US economy is picking up steam,” he said. “This raises the potential for the $A to depreciate with our currency strategists expecting a gradual decline to $US0.87 by the end of next year - a development that would clearly support growth domestically. However, these new downside risks highlight the likelihood of a fairly gradual turnaround in economic activity, and in the cash rate. ANZ forecasts the cash rate to remain on hold this year, before gradually increasing through 2015.”