Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Australia ANZ-Indeed jobs ads edge 0.4% higher in July

Published 08/06/2023, 09:41 PM
Updated 08/06/2023, 09:46 PM
© Reuters. FILE PHOTO: A pedestrian is reflected in the window of a branch of the Australia and New Zealand Banking Group (ANZ) in central Sydney, Australia, October 25, 2017. Picture taken October 25, 2017. REUTERS/Steven Saphore/File Photo

SYDNEY (Reuters) - Australian job advertisements posted a small rise in July after an outsized decline in the previous month, data showed on Monday, but analysts say the lift could be a blip as rate hikes work to cool red-hot labour demand.

Data from Australia and New Zealand Banking Group and employment website Indeed showed job ads rose 0.4% in July from June, when they fell 2.7%.

Ads were down 8.9% year-on-year earlier, but remained 49.8% above pre-pandemic levels.

The Reserve Bank of Australia has raised interest rates by a whopping 400 basis points to 4.1%, but the labour market has defied expectations of a slowdown so far, with the jobless rate nearing 50-year lows and the economy adding more jobs than expected.

"The series has fallen 2.1% over the past three months, suggesting the July lift is likely to be a blip," said economists at ANZ.

© Reuters. FILE PHOTO: A pedestrian is reflected in the window of a branch of the Australia and New Zealand Banking Group (ANZ) in central Sydney, Australia, October 25, 2017. Picture taken October 25, 2017. REUTERS/Steven Saphore/File Photo

"There are other signs labour market momentum is starting to slow as the RBA’s 400bp of hikes flow through to economic activity... this suggests we'll see a gradual cooling of the labour market from its very strong starting position."

Markets suspect the cash rate is nearing its peak, with futures pricing in an even chance of a further rate hike to 4.35% in December. A majority of economists polled by Reuters expect the RBA could deliver the last hike in the fourth quarter.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.