ANZ has just released the latest Job Ads series which showed a continued strengthening in the number of job advertisements both in traditional media such as newspapers and also on the internet.
Job ads were up 1.5% in August taking them to a rise of 8% year-on-year.
ANZ Chief Economist Warren Hogan said: “Recent trends in job advertising are consistent with a gradual turnaround in the labour market. ANZ job ads are up 8% over the year to date, while the other key labour market condition ‘cross-checks’ have also generally continued to improve recently. Importantly, these developments appear to jar with the surprise jump in July’s unemployment rate to 6.4% and suggest recent labour market conditions are steadily improving.”
That’s really good economic news but the charts of the relationship between job ads and employment growth underscore why Hogan has seen the recent spike to a 6.4% unemployment rate as jarring.
The outlook based on the past relationship looks solid for employment growth.
Certainly internet ads are the key driver of job ads these days but the directional correlation between print and internet ads remains strong.