Job advertisements fell a modest 0.1 per cent month-on-month in October following a 0.2 per cent gain in September, according to latest ANZ Job Advertisements data.
ANZ’s chief economist Ivan Colhoun said trends in job advertising now appear to be stabilising after falling for most of the past three years.
“While conditions in the labour market remain quite soft, there are now signs emerging that much of the deterioration in the unemployment rate has already occurred,” he said.
According to Mr Colhoun, the recent stabilisation in overall job ads has been driven by a modest pick-up in hiring intentions in the non-mining states, with NSW performing particularly well.
“This is a tentative, positive signal that the economy is beginning its necessary transition away from its dependence on the mining sector and towards other areas of growth,” he said.
My Colhoun identified the housing market as a key driver in the economy’s upturn and said this should create a flow-on effect for the wider economy.
“Business confidence has bounced strongly in recent months,” he said. “A sustained improvement in business confidence would be positive for a broader pick-up in activity and employment growth.”
Ahead of the Australian Bureau of Statistics’ October labour market report, to be released this Thursday, Mr Colhoun said he expects the unemployment rate to have increased to 5.7 per cent and also expects this rate to rise slightly higher over the coming months.
“ANZ forecasts the unemployment rate to remain between 5.75 per cent and 6 per cent over the next six to nine months,” he said.
Written by a staff reporter in The Adviser Magazine.