MNI: Australia ANZ Jan Job Ads Up Strongly, Trend Accelerates

By Sophia Rodrigues

     SYDNEY (MNI) - Job advertisements in Australia rose sharply in January,

raising prospect of a stronger labor market in coming months though it may be

too early to feel optimistic given the volatility around this time of the year.

     Data published by ANZ Monday showed jobs ads rose 6.7% m/m in January, more

than reversing the 2.7% fall in December. The increase led to an acceleration in

trend rate to +0.7% in December from +0.1% originally reported. In y/y terms,

the trend rate accelerated to +12.3% in December before slowing slightly to

+11.9% in January. 

     ANZ warned that the data needs to be viewed with caution given the

volatility around the end of the year and start of new year. Hence it may be too

early to feel confident that the slowdown seen in the second half of last year

may be reversing.

     For now, the data suggests employment growth is likely to remain strong in

2018 and lead to a gradual fall in the jobless rate. The data and other evidence

from the labor market could prompt the Reserve Bank to lower its unemployment

rate forecast in the February Statement on Monetary Policy due on Friday.

     From the ANZ job-advertisement survey for January:

                             January                      December

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

Job Ads (SA*, Change M/M)      +6.2%    -2.7% (revised from -2.3%)

Job Ads (SA*, Change Y/Y)     +13.8%                        +11.4%

Job Ads (Trend, Change M/M)    +0.7%    +0.7% (revised from +0.1%)

Job Ads (Trend, Change Y/Y)   +11.9%  +12.3% (revised from +10.8%)

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

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