ANZ’s job advertisement survey is well-known as a leading indicator of employment numbers. It reflects changes in demand for labour and provides another measure of activity in the economy. Figures for February have been released and, after revisions were made to previously-recorded data, total advertisements were 0.7% lower than January’s figures but 6.9% higher than figures from January 2016.
David Plank, ANZ Head of Australian Economics, said the figures should be treated with some caution as they “may reflect the tricky nature of seasonal adjustment at this time of the year.” However, he was still optimistic about the implications of the latest numbers. “Looking ahead, strength in business conditions, firms’ profitability and an increase in capacity utilisation all point to an improvement in labour market conditions in our view. Overall, we expect the unemployment rate to slowly edge downward through 2017.” Other economists agreed. AMP Capital’s Shane Oliver thought the figures suggested “reasonable jobs growth” through 2017, as did the St George Bank’s chief economist, Besa Deda. “For the year to February, job ads lifted by 6.9%, suggesting employment growth could lift from its current level.”
