The economy looks like it is healing and the search for jobs is getting easier according to the ANZ which this morning released its monthly job ads data.
The ANZ said job ads rose 1.4% in March after February’s solid 4.7% rise. Ivan Colhoun, ANZ’s Chief Economist for Australia, wrote in note to clients: “While some of the improvement may be overstated due to seasonal adjustment challenges that typically occur in the first few months of the year, there has been a consistent improvement in labour demand across a number of different job ads/vacancies measures recently.”
Colhoun also noted that this strength is now pushing job ads higher in trend terms at 1% a month and even though job ads are still 3.7% below levels seen last year the fact that job ads have now been rising for 5 months is a sign that the economy is healing.
It’s healing to such an extent that a five-month run like this “has historically been a reliable indicator that the next move in interest rates is up.”
Even taking into account the growing likelihood that the next move in rates is higher more Australians having an opportunity for work is a good thing econmically.