ANZ job ads: off to a solid start in 2017

KEY POINTS

Job advertisements jumped 4.0% m/m in January more than reversing the 2.2% fall in the previous month. Annual growth in job ads bounced to 7.1% y/y, up sharply from 3.7% y/y in December.

 

In trend terms, job ads rose 0.6% m/m once again in January. The annual rate picked up slightly to be 6.1% y/y this month from 5.5% y/y in December.

ANZ SENIOR ECONOMIST FELICITY EMMETT COMMENTED:

“The solid rise in ANZ job ads in January is consistent with the increase in business conditions and confidence reported last week. The bounce in conditions, ongoing strength in house prices and last week’s mammoth trade surplus, suggest to us that the underlying fundamentals of the economy remain solid despite the disappointing Q3 GDP report.

That being said, not all recent data have been strong. While the jobs report posted reasonable employment growth (including in full-time employment), the uptick in the unemployment rate was disappointing.

But the bounce in ANZ job ads, along with modest increases in other leading indicators, lends support to our view that although momentum in the labour market has slowed, it remains strong enough to underpin a gradual decline in the unemployment rate this year.”

FIGURE 1. JOB ADVERTISEMENTS RISE SHARPLY IN JANUARY