[SYDNEY] Australian job advertisements in newspapers and on the Internet posted a second month of healthy gains in September, an encouraging outcome suggesting employment growth may be picking up momentum.
A monthly survey by Australia and New Zealand Banking Group showed total job advertisements rose 3.9 per cent to 153,778 per week on average in September, adding to the 1.3 per cent gain in August.
Ads were 12.8 per cent higher on September last year, speeding up from the 8.8 per cent pace seen in August and nearing the 14.1 per cent rate set in May.
Internet ads grew 4.0 per cent in September, while newspaper ads dipped 2.7 per cent. Newspaper job ads have been in decline for years and account for only a fraction of the total. "The positive trend in job advertising is a sign that the economy is so far adjusting relatively well to significant headwinds from falling commodity prices and mining investment," said Warren Hogan, chief economist at ANZ.
Mr Hogan said demand for labour in a range of services industries has strengthened. "Activity in these industries has been supported by the sharp depreciation of the Australian dollar, which has redirected spending back towards the domestic economy, and by low interest rates, particularly through robust housing market activity and its flow-on effects." But Mr Hogan warned that the significant support to growth will wane heading into 2016, which coincides with his views that the Reserve Bank of Australia (RBA) will have to cut interest rates next year.
The RBA meets on Tuesday and is considered almost certain to keep the cash rate steady at a record low 2.0 per cent.
The official employment report for September is due next week.