Job advertisements have risen for the fourth consecutive month in September, suggesting labour market conditions are on the mend.
According to the ANZ
Job Advertisement series, job advertisements rose 0.9% in September and are now 7.9% higher over the past year. The September increase was driven by internet job ads (+1.1%). Newspaper job ads dropped in September after an increase in August (-3.5%).
Warren Hogan, ANZ chief executive said it is the fastest growth we have seen in some time.
“The gradual improvement in ANZ Job Ads is an encouraging sign that labour demand is solidifying. ANZ job ads are now growing at an annual rate of 7.9%, a moderate rate by historical standards but the fastest rate in over two years. Other leading indicators of labour demand such as business conditions, profitability and capacity utilisation also point to some trend improvement,” he said.
Although, unemployment is likely to remain slightly elevated for a while as the economy adjusts post mining boom.
“We expect the unemployment rate to stabilise at just above 6% in the next few quarters before decreasing gradually from there. Employment in mining and related industries will be weighed down by the windback in mining investment, while improving conditions in some labour intensive industries such as health and construction should provide an offset,” Hogan said.
“The recent depreciation of the AUD will also assist in the transition towards non-mining sources of economic growth, assist employment in some industries such as tourism and help stem job losses in manufacturing.”