Job Adverts still strong in August for Australia

The total number of jobs advertised in Australian newspapers and on the internet rose marginally by 0.1 percent in August. Australian job advertisements in August were 34.3 percent higher than 12 months ago. Looking at the different channels for advertising jobs, the number of job advertisements in newspapers increased by 1.5 percent in August. This rise follows a 1 percent fall in July. Newspaper advertisements are now 3.1 percent higher than in August 2006.

The increase in newspaper job advertisements in August was driven by rises in the ACT (7.1%); South Australia (5.2%); Queensland (4.1%); Tasmania (4.0%); Western Australia (2.2%); and Victoria (0.9%). These rises were partially offset by job advertising falls in the Northern Territory (-6.3%) and New South Wales (-0.1%).

The number of internet job advertisements fell slightly by 0.1 percent in August. In trend terms, internet job advertisements are still growing solidly, and annual growth has picked up to 40.6 percent from 25.9 percent nine months ago.

“Total job advertisements remain at very high levels. This indicates that the demand for labour continues to be very strong,” ANZ Head of Australian Economics Tony Pearson said. “Having said that, the monthly trend rate of increase in job advertisements is now easing from its recent highs. This has been associated with a similar easing in the monthly trend rate of increase in employment.

“The outlook for the labour market in the short term has been clouded by a number of developments, including the latest phase of the Federal Government’s Welfare-to-Work program implementation, the recent financial market volatility and repricing of credit risk, and the outbreak of equine influenza. These factors could lead to a short-term rise in the unemployment rate from its current three-decade low. Nevertheless, the outlook for Australian economic growth over the medium term remains positive, and this is expected to underpin continued strong growth in employment. Overall there is little prospect of a substantive easing in the current very tight labour market conditions,” Mr Pearson said.