Job ads set for rebound

May figures show turnaround after horror April

AUSTRALIAN job advertisements steadied in May after suffering their largest=ever fall in April, with a steady improvement seen as the month progressed after a very depressed start.

Figures released yesterday by Australia and New Zealand Banking Group show total job ads edged up 0.5 per cent in May, after collapsing 53.4 per cent in April.

Ads were still down 59.8 per cent on the same month last year at a weekly average of 63,428.

“The week-to-week movements are more promising, with job ads improving steadily during May, from a low point at the beginning of the month,” ANZ senior economist Catherine Birch said. “This is consistent with the gradual roll back of COVID-19 restrictions, which has allowed some businesses to reopen, extend trading hours or increase activity, and is seeing a recovery in household spending.”

Economists fear unemployment could spike to 10 per cent in coming months as large chunks of the economy were shut to fight the virus.

Official data showed the number of people employed dived by 594,300 in April, while the jobless rate rose to 6.2 per cent.

Ms Birch said a further drop in employment was likely in May, although a rapid acceleration was expected from midyear as much of the economy reopens.

The ANZ vacancies series is closely watched by the Reserve Bank of Australia and its governor Philip Lowe (right) given it counts actual job ads, while Australian Bureau of Statistics data is based on the intentions by firms to hire.

The RBA has slashed rates to a record low of 0.25 per cent and launched a massive bondbuying program to cushion the economy from the impact of the pandemic. However it left rates unchanged at its June meeting and eased off on its bond-buying in May as the stock market steadied and the country began to get on top of the coronavirus pandemic.

“It is possible that the depth of the downturn will be less than earlier expected,” Mr Lowe said in a statement after the meeting on June 2.

“The substantial, co-ordinated and unprecedented easing of fiscal and monetary policy in Australia is helping the economy through this difficult period.”