Job ads hit four-year high in May
Employer demand for more staff is gaining momentum, with the number of job advertisements hitting a four-year high.
Job ads on the internet and in newspapers spiked by 2.4 per cent in May, after stalling for six months.
And for the year to May, job ads were up 9.1 per cent – the biggest rise in eight months, figures from ANZ show.
ANZ head of Australian economics Felicity Emmett says the economy is chugging along nicely and the transition to non-mining activity is gaining traction.
“The rise in job ads is consistent with the strength in business conditions, which point to ongoing solid growth in the economy,” she said.
Ms Emmett said the strong first quarter national GDP report, released by the Australian Bureau of Statistics last week, shows that the housing and services industries are doing the heavy lifting as the mining boom fades.
“These sectors are also clearly helping to support jobs growth,” she said.
Gross domestic product rose 1.1 per cent in the March quarter and 3.1 per cent through the year, in each case the fastest for at least three years.
Ms Emmett noted that ongoing weak wage growth is likely to continue to drive solid employment gains.
“But very low growth in labour costs is feeding through to very low inflation,” she said.
“With inflation set to stay outside the RBA’s target band until at least mid-2017, we expect to see another cut in the cash rate in August to a low of 1.5 per cent.”
CommSec chief economist Craig James said the jobs market remains in solid shape and May’s lift should be positive for companies in the consumer discretionary sector.
“Still, it’s important to note that job ads aren’t as good a leading indicator on employment as they were a few years ago,” he said.
“Job seekers are increasingly going to corporate websites directly and others are using social media like LinkedIn to find positions.”
Sourced from https://au.finance.yahoo.com/news/job-ads-hit-four-high-065707242.html
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