Job Ads Fall to Nearly 4-Year Low Amidst Rising Job Vacancies

Australia and New Zealand Banking Group Limited (ASX: ANZ) reported largest monthly decline since the May result with 6.7% m/m dip in December on a seasonally adjusted basis. While, SEEK Limited (ASX:SEK) reported a 8.4% y/y fall in the job ads in November 2019.

Source: ANZ

Moreover, ANZ had reported a fall of 1.7% m/m in the Australian job advertisements in newspapers and internet in November 2019. The fall in the ads during the month of October 2019 was 1.0% m/m which followed a gain of 0.3%m/m in September 2019.

ANZ Senior Economist, Catherine Birch commented:

1.6% Increase in Number of Job Vacancies

According to the latest data released by Australian Bureau of Statistics, the number of job vacancies increased by 1.6% in the November 2019 quarter and fell by 0.9% over the year on seasonally adjusted basis.

However, the number of job vacancies in Australia decreased by 0.4% in the November 2019 quarter, and 2.3% over the year in trend terms.

Casting Eye over latest Employment Figures

The ecosystem created in the economy through employment generation, the satisfaction of workers at their workplace, increased revenue generation, and contribution to the environment benefits the whole society.

The Department of Employment, Skills, Small and Family Business believes that the labour force figures for November 2019 reflect more Australians in work than ever before, highlighting the following points:

• Over the year to November 2019, employment had risen by 254,900 (or 2.0%), above the decade average growth rate of 1.8%;
• Seasonally adjusted full-time employment stood at 144,700, 1.7% higher than it was a year ago;
• Full-time employment comprised 56.8% of total employment growth over the last year;
• The seasonally adjusted unemployment rate fell by 0.1 percentage points over the month, to 5.2 per cent in November 2019;
• The participation rate in November 2019 remained strong at 66%;
• A total of 1,477,600 jobs had been created since the Government came to office, an increase of 12.9%;
• The youth unemployment rate for November dropped by almost 1 percentage point, down to 11.5%.

Senator the Hon Michaelia Cash, Minister for Employment, Skills, Small and Family Business commented:

In a nutshell, Australia has a record number of people employed (almost 13 million), with employers creating almost 40,000 jobs. Over the period of last 12 months, employment in Australia increased by almost 255,000 out of which almost 57% jobs created were full time.

What needs to be demystified here is that the decrease in the number of ads does not necessarily portray effect of shrinking job market in Australia.

Minister Cash is of the view that:

Moreover, economic growth alone cannot necessarily mean creation of additional and healthier jobs, especially for the vulnerable and poor sections of the society.

Bottomline

There are several indicators that define the capacity of an economy to create enough employment prospects for its population that can further deliver significant insights towards the overall growth performance of the economy.

For the Australian Government as a whole, it is their responsibility of putting in place the policies to get more youth off welfare and into work by creating more jobs of satisfaction and development.

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