The ANZ job ads are out and it’s another fall with November showing a 0.8% contraction.
This now sees ads 10% lower year on year which is disturbing given the adjustment necessary in the Australian economy as the mining investment boom ends.
But the ANZ has a positive take on the data noting:
While overall job advertising is still trending modestly lower, there are some positive signs of improving labour demand in some states. Together with trends in other labour demand measures, ANZ job ads in the most populous state, New South Wales, have stabilised over the past four months, while job advertising in Victoria is falling at a slower pace. The pace of decline in job ads also appears to be moderating in Western Australia which is a positive sign given that falls in labour demand in the mining states have been a significant drag on overall labour demand this year. Job advertising continues to fall quite sharply in the ACT.
A slowing in the rate of descent is necessary before the recovery in job availability across the economy so this interpretation of the data is welcome. This is particularly the case when you take into account the following chart and relationship between job ads and unemployment which should start to fall soon.
Another sign that monetary policy, the Reserve Bank’s low rates, is starting to gain traction in Autralia.