Total job advertisements rose for the second month in a row in June, according to ANZ’s monthly jobs ads survey. Month on month, they rose by 0.5% or 8.0% compared to June 2015. After revisions to past data, May’s comparable figures were 2.2% and 9.1% respectively.
The survey’s results produce what economists call a “leading indicator”, or a statistic which gives a strong hint as to the direction and strength of parts of the economy. In the case of ANZ’s job ads survey, it provides a preview of conditions in the employment market, especially with regards to employer demand for labour. More advertisements generally means more hirings and thus lower unemployment rates.
ANZ’s Felicity Emmett said the figures indicated recent employer demand was a reflection of a solid economy. “…the strength in labour demand over the past two months is consistent with robust business conditions and solid momentum in the domestic economy.” She did, however, express concern for employment figures later in the year. “Unfortunately, uncertainties around the economy are mounting – both offshore from the Brexit vote and domestically from the unresolved federal election outcome – and that may pose some downside risks to the employment outlook later in the year.”