As per ANZ’s recent Media release, on a seasonally adjusted terms, ANZ Australian Job Advertisements uplifted by 0.2 percent in the month of October after experiencing the fall of 0.7 percent in the September month. On an annual basis, growth in the Australian Job Advertisements has slowed to 3.6 percent in October which was 4.7 percent in the prior month. As per the Media release, this is the slowest annual growth in ANZ Australian job ads since April 2015.
ANZ’s head of Australian Economics Mr. David Plank said the slowdown in employment growth in 2018 has been broadly consistent with the move in ANZ Job Ads, however in recent months employment growth has outperformed the signal from job ads. The unemployment rate has also dropped more sharply than ANZ Job Ads would imply. Other indicators of the labour market, such as the ABS Job Vacancy series, are sending a more positive signal. As per the Labour Market Indicator a further decline in the unemployment rate is more likely to happen.
In September month Australian Bureau of Statistics (ABS) reported that the Australia’s unemployment rate decreased to its lowest since 2016 as it dropped to 5% in the September month. The decrease in the unemployment was driven by the substantial decline in the number of people actively looking for work and it is expected that the unemployment rate may bounce back over the remainder of the year as these employment rates are highly volatile.
Federal Treasurer Mr. Josh Frydenberg said the decrease in the unemployment rate is something to celebrate and the increase in the full-time employment by 20,000 is consistent with the momentum that they are observing in the economy and many economists believe that the fall in the unemployment rate and the continuous growth in total hours worked is going to benefit the consumers through higher aggregate household income, as well as boosting consumer sentiment.
Further, due to the healthy increase in the full-time jobs, the labor conditions are looking solid in Australia and it is anticipated that the wage pressures will pick up gradually.
In trend terms, job ads decreased by 0.2 percent m/m for the fifth consecutive month and Job ads increased by 3.8 percent y/y to October in trend terms (down from 4.8 percent y/y in September), and also it is the weakest result since April 2015.
At the moment, this trend is to be watched out for while quarterly wage price data and monthly jobs print data will be out sometime this month.
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