Australia ANZ Job Advertisements M/M Up for 5 Straight Months

     SYDNEY (MNI) - From the ANZ job-advertisement survey for July published

Monday:

                               July                 June

--------------------------------------------------------

Job Ads (SA*, Change M/M)     +1.5%  +2.7% (no revision)

Job Ads (SA*, Change Y/Y)    +12.8%               +10.5%

Job Ads (Trend, Change M/M)   +1.0%                +1.3%

Job Ads (Trend, Change Y/Y)  +10.7%               +10.3%

     *Seasonally adjusted

     FACTORS: Job advertisements grew for the fifth consecutive month for the

longest streak of gains in at least two years. The increase took y/y growth rate

to 12.8% -- a pace last seen in September 2015. The trend y/y growth rate of

10.7% in July was the highest since December 2015. 

     TAKEAWAY: The data shows employment growth is likely to continue over the

coming months and is supportive of the Reserve Bank's upbeat forecasts in the

Statement on Monetary Policy published Friday. The RBA said information from

leading indicators, such as job advertisements and vacancies, pointed to solid

employment growth over the second half of 2017 following stronger-than-expected

growth over the first half. Further out the RBA expects employment growth to be

broadly consistent with labor force growth. Based on these expectations the RBA

expects the unemployment rate to edge lower over the forecast period to be just

under 5.5% at the end of 2019.

     COMMENTS: ANZ head of Australia economics David Plank said recent data

showed a clear improvement in labor-market conditions consistent with elevated

business conditions, profitability and capacity utilization.

     "Broadly, forward indicators and survey-based measures point toward

near-term jobs growth in the order of 15k-20k per month. Given the importance of

the labor market and wage growth to the course of monetary policy we will be

closely watching the 2Q Wage Price Index number, out on Aug. 16," Plank said.

--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com

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