Job Ads in newspapers have plummeted 6.5 percent in May, despite continued growth in online ads according to the latest ANZ Job Advertisement series results.
The ANZ Job Advertisements Series shows the total number of jobs advertised across both newspapers and online was 4.3 percent higher in May, but was sharply down when looking at the newspaper category alone. Total job advertisements are 33.8 percent above the lowest point in this cycle (since the GFC) in July last year, but are still 39.8 percent below the all-time high reached in April the year before.
ANZ Senior Economist Katie Dean believes this mixed result is suggests that employers remain confident about Australia’s long-term prospects, despite the tightening of monetary policy in the first half of the year and renewed concerns about the global environment.
Job ads in newspapers fell sharply though, down 6.5 percent in May, the biggest fall since January 2010. Despite the monthly fall, newspaper job advertisements are still 13.2 percent higher than the cyclical trough point in July 2009.
Balancing the fall in newspaper job ads, the number of internet job advertisements rose by 5 percent in May and are now 22.3 percent higher than they were a year ago.
“Hence, while the overall outlook appears bright, the fall in newspaper job advertising in May does suggest that some businesses are beginning to adopt a more cautious stance. This is not unexpected given three consecutive interest rate rises in the first half of 2010 as well as the now uncertain global backdrop.” Ms Dean said.
“The ABS’ May Labour Force report, due Thursday 10 June, is therefore likely to show some easing in the rate of new job creation, consistent with the trend in the ANZ Job Ads series. We are expecting jobs growth of around 7,000 this month. With the participation rate sitting at 65.2 percent, this would see the unemployment rate hold at 5.4 percent for the third successive month.”
The latest ABS figures show that GDP, in seasonally adjusted volume terms, grew 0.5 percent in the March quarter 2010. December quarter 2009 growth was revised to 1.1 percent, from an initially published 0.9 percent. Growth through the year to March quarter 2010 was 2.7 percent. Growth is moderating, but businesses continue to recover from the GFC, with recruiters buoyant as demand increases and wages on the up in the 2010 Salary Survey Results.
