Australia: Job Advertisements Ease off in September

The total number of jobs advertised in Australian newspapers and on the internet fell marginally by 0.4 percent in September to an average of 247,853 per week. This is a continuation of the consolidation in job advertisements that began in June following May’s robust 10.3 percent rise in total advertisements. The total number of advertisements in September was 33.1 percent higher than 12 months ago.

The number of job advertisements in newspapers declined by 0.7 percent in September to an average of 20,115 per week. This fall follows a 1.5 percent increase in August. Newspaper advertisements are now 1.8 percent higher than in September 2006. The fall in newspaper job advertisements in August was driven by declines in South Australia, New South Wales and Western Australia. These declines were partially offset by job advertising rises in Tasmania, Victoria, Queensland, the ACT and the Northern Territory.

The number of internet job advertisements fell slightly by 0.3 percent in September to an average of 227,738 per week. In trend terms, internet job advertisements are still growing solidly, with annual growth running at 37.7 percent, up from a rate of 25.9 percent ten months ago.

“Total job advertisements remain at high levels, but the monthly trend rate of increase is easing. This suggests some steadying in the demand for labour after a period when it has been rising very strongly,” ANZ Head of Australian Economics Tony Pearson said. “The monthly trend rate of increase in employment has also been easing. The forward nature of the relationship between the Job Advertisements series and employment suggests that employment growth will continue to slow over coming months, although it will remain positive. We view this as a consolidation in the labour market rather than a change in direction. With economic growth continuing to show considerable strength, demand for labour will remain robust and the labour market will remain very tight.”

“Looking at job advertisements by state, it is in the largest states – New South Wales, Victoria, and Queensland – where demand for workers appears to be stabilising. In Western Australia, job advertisements are now actually trending down after five years of exceptionally strong growth. This has been associated with a gentle rise in the rate of unemployment through 2007 and suggests the strong population growth in that state may now be overwhelming the demand for labour. In contrast, in the smaller states and territories – South Australia, Tasmania, Australian Capital Territory and the Northern Territory – job advertisements are showing a marked upturn, pointing to an acceleration in the demand for workers. In South Australia and Tasmania this would seem to be associated in part with specific large investment projects,” Mr Pearson said.