Gap remains between job ads and unemployment
The number of job advertisements in Australia continues to rise, so why isn’t this translating into a decline in the unemployment rate? This is something that ANZ has addressed in its latest Job Ads Series, which points to the eighth consecutive month in which listings have improved.
Meanwhile, the Australian Bureau of Statistics (ABS) has released unemployment data for last month, which shows a slight rise in the number of people out of work. Between December and January, the unemployment rate increased from 6.1 per cent to 6.4 per cent.
ANZ Chief Economist Warren Hogan commented: “A gap between job ads and the official data remains, most likely reflecting a higher rate of retrenchments in industries such as manufacturing and resources, which suggests that overall labour demand is struggling to keep pace with the flow of new workers into the economy.”
The bank forecasts that unemployment won’t be lowered any time soon, with the jobless rate likely to remain around the 6.5 per cent mark for much of the year. This comes as ANZ figures reveal a 1.3 per cent month-on-month rise in the number of advertised roles in January.
While newspaper advertisements struggled in every part of the country except New South Wales, the number of vacancies posted online escalated. Internet job ads were up 1.5 per cent compared to the previous month and increased 14.8 per cent from a year earlier.
There are high hopes that this month’s cut to the official cash rate will start to have some impact on the economy, while helping to bring down the number of people out of employment. Mr Hogan believes another rate cut could soon be on the cards, especially if the economy doesn’t appear to show any sign of improvement.
Whether you’re expanding your workforce this year, or maximising the skills of the people you have, take a closer look at HR management software.