ANZ’s job advertisement survey is well-known as a leading indicator of employment numbers in Australia. It reflects changes in demand for labour and it provides another measure of activity in the economy. There is also a fairly good inverse relationship between changes in Australia’s unemployment rates and changes in the RBA cash rate. Understanding the path of Australia’s unemployment rate has historically provided a reliable indicator of RBA rate changes.
May’s figures have been released and, after revisions, total advertisements were 1.5% higher at 179,245 (seasonally adjusted) while April’s seasonally adjusted figures were revised up from 176,418 to 176,573. On a 12 month basis, total job advertisements grew by 11.5% while April’s comparable growth rate was revised up to 8.7%.
Bond yields and the local currency finished the day higher. Yields on 3 year bonds increased by 5bps to 2.21% and 10 year bond yields added 3bps to 2.74% while the local currency increased by around 0.80 US cents to 76.50 US cents. However, the surge in the currency was more likely attributed to higher-than-expected retail sales figures which came out at roughly the same time, while bond yields were also influenced by higher yields in US markets on Friday night.