- Job advertisements in Australia increase for a twelfth consecutive month, pointing to the resilience of the country’s labour demand
- Figures published by ANZ show a 7.9 per cent jump in job ads during May, which followed a 4.9 per cent climb in April
- At 213,894 ads, it’s the most since 2008 and represents a 220 per cent increase compared to a year ago
- Unemployment figures have also dropped, hitting 5.5 per cent in April compared to a pandemic peak of 7.5 per cent seen in July last year
- Current estimates put the jobless rate at 4.8 per cent by the end of this year
Job advertisements in Australia have increased for a twelfth consecutive month, suggesting labour demand could withstand both COVID-19 lockdowns in Victoria and the removal of some government support programs.
Figures published by ANZ this morning show a 7.9 per cent jump in job ads during May, which followed a 4.9 per cent climb in April.
At 213,894 ads, it’s the most since 2008 and represents a 220 per cent increase compared to a year ago when lockdown measures put the brakes on many industries. The latest lockdown in Victoria, however, is yet to have an impact.
“The Victorian lockdown is unlikely to derail the state’s labour market recovery,” said ANZ senior economist Catherine Birch.
“Even if we see some employment losses in June, as long as restrictions start easing from 11 June as currently planned, workers should be reinstated or find new jobs quite quickly, given the underlying strength in the labour market.”
Unemployment figures have also dropped much quicker than expected, hitting 5.5 per cent in April compared to a pandemic peak of 7.5 per cent seen in July last year. That trend is anticipated to continue, with current estimates putting the jobless rate at 4.8 per cent by the end of this year and 4.4 per cent by the end of 2022.
The Reserve Bank of Australia is hoping to push unemployment down to four per cent, or even lower, in the hope of lifting wage growth and inflation after years of only mild gains.
“What is still uncertain is the strength of the transition from lower underutilisation to higher wages growth, and then to inflation,” Birch added.