ANZ has released its latest jobs ads data which showed once again that the economy is recovering and that monetary policy is working.
The rise of 2.2% in April was solid, with ANZ highlighting that “job advertising has recovered this year, having risen for four consecutive months at an annualised rate of nearly 30% over this period.”
While the 4 month rate of growth is spectacular, the key point ANZ highlights is the really solid recovery in the annual rate of growth in Job Ads of 1.5% is now back in positive territory for the first time since August 2011.
They added: “Continuing increases in job ads historically have been a reliable indicator that the next move in interest rates is up.”
ANZ Chief Economist for Australia Ivan Colhoun said:
Labour demand has strengthened this year…the pick-up in hiring intentions suggests employment growth will continue to improve modestly in the near term and the unemployment rate should be close to a peak around 6% or slightly lower.
However Colhoun also highlighted the risks posed to the economic outlook from the “larger-than-expected fiscal contraction”, a reference to the upcoming federal budget, which is expected to include some harsh measures.
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