ANZ job ads: taking a breather in September

KEY POINTS

After six straight monthly increases, ANZ Job Advertisements were flat (0.0% m/m) in September. Job advertisements currently sit 12.5% higher than a year ago, and have risen around 9% since February this year.




In trend terms, job ads were up 1.0% m/m in September following a 1.3% rise in the previous month. Annual trend growth picked up slightly, rising from 12.4% in August to 12.9% this month.

ANZ SENIOR ECONOMIST, FELICITY EMMETT, COMMENTED

“Some moderation in job ads is not too surprising after a solid six month run. In trend terms job ads continue to rise, albeit at a slightly slower pace. Similarly, employment has grown solidly for the past 11 months, catching up to and in some cases even overshooting forward labour market indicators.

The strength in labour market conditions is consistent with elevated business conditions, which are at their highest point since the global financial crisis. Notwithstanding the slight drop in August, profitability and capacity utilisation remain high - suggesting that labour market strength is likely to continue.

The RBA has noted the positive developments in the labour market this year, in particular the strength in full-time employment. The recent decline in the underemployment rate will also provide greater confidence that the labour market is tightening, supporting the RBA’s view that a pick-up in wage growth will eventually follow.”