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.
July’s figures have been released and, after revisions, total advertisements increased by 1.5% to 178,322 (seasonally adjusted) while June’s seasonally adjusted figures were revised up by an almost-insignificant amount to 175,762. On a 12 month basis, total job advertisements grew by 7.3%, an increase from June’s comparable growth rate of 6.9%.
Bond yields finished the day lower but they have been following the lead from lower US yields on Friday night. Yields on 3-year ACGBs remained unchanged at 2.15% while 10-year ACGBs slipped 1bp lower to 2.73%. The Aussie was a little softer at 73.90 US cents.