Growth in jobs slowing

NATIONAL jobs growth has slowed in 2018, leaving the unemployment rate steady at 5.5 per cent for a third straight month, while the mining sector boosted jobs in Queensland.

The number of people with jobs rose by 4900 in March, seasonally adjusted figures from the Australian Bureau of Statistics show, well below market expectations of a gain of 20,000.

The number of people with jobs has risen by 36,000 so far this year, following a gain of over 400,000 in 2017.

Queensland Resources Council chief executive Ian Macfarlane said the data showed the mining sector helped the state achieve the strongest annual growth in trend employment in Australia of 4.3 per cent, outpacing nearest rivals the ACT ( 3.9 per cent) and NSW ( 3.6 per cent).

“Last financial year, direct full- time equivalent jobs in the resources sector grew by 12.7 per cent to 38,150,” Mr Macfarlane said.

“Across the state, the resources sector supports one in every eight jobs.”

Queensland’s unemployment rate remained at 6 per cent.

Online jobs site SEEK says the sectors that experienced the largest growth are mining, resources and energy, up 35 per cent compared with a year ago, and science and technology, up 20 per cent.

Sectors that saw significant falls were advertising, arts and media, down 20 per cent, and real estate, declining 12 per cent on a year ago.

ANZ senior economist Felicity Emmett said it was inevitable that there would be a period of softness in the labour market in Australia after 2017’ s stellar performance.

“The slowdown in employment growth comes on the back of a very strong run through 2017 and with labour market leading indicators remaining positive there are still reasons to be optimistic,” she said.

“Buoyant business conditions and ongoing strength in job vacancies suggest that employment will continue to expand.”

Australian Institute of Company Directors chief economist Stephen Walters said employment growth in 2018 had fallen significantly short of expectations but he was positive about the outlook.

“Business surveys suggest that most firms still expect to lift hiring this year,” he said.

“Ultimately, this should help to boost wages growth from the current near- record lows.”