ANZ: Job ads up, but market is still weak

NEWSPAPER and internet job ad numbers rebounded in June, ANZ reports, but underlying labour market weakness looks set to continue.

Australian job ads gained 4.6 per cent for the month, according to figures released by the bank yesterday, reversing disruptions caused by the Easter holidays in April and the federal election in May.

June’s ad numbers represented one of the biggest gains in 18 months but ANZ head of Australian economics David Plank said they represented only a partial recovery following a fall of more than 8 per cent fall in May.

“The ‘holiday-year effect’ in late April and the timing of the election appear to have been responsible for much of the decline in May, and the rebound in June can be seen as an unwinding of that effect,” he said.

Mr Plank said the overall trend still pointed downward.

“(It) points to slowing employment growth and rising unemployment,” he said. “If confirmed by the actual employment data, then the RBA will likely react by lowering the cash rate yet again.”

Unemployment remained unchanged at 5.2 per cent in May after a surprise uptick the previous month.

The Reserve Bank of Australia last week cut the cash rate to a fresh record low of 1 per cent in an attempt to eat into spare labour market capacity. Lacklustre inflation, an ongoing property market slump, and sluggish consumer spending are also proving roadblocks to economic growth and economists widely expect another 25 basis point rate cut to 0.75 per cent by Christmas. Meanwhile, the Australian Bureau of Statistics reported about half of the nation’s 1.1 million underemployed part-time workers were, as of February 2019, actively looking for more work.