Australian job ads in record jump

Australian job advertisements posted their biggest increase in 11 years last month, more than reversing January's surprise decline, as employers stepped up hiring plans.

The total number of jobs advertised rose by 19.1 per cent in February, after an 8.1 per cent fall in January, according to the ANZ Bank's monthly survey. It was the largest monthly increase in the 11-year history of the series, ANZ said.

"Total job advertisements are continuing to improve month on month from their cyclical low point last year," said ANZ chief economist Warren Hogan. "This has already translated into solid employment growth and reduced unemployment, even through a period of relatively strong labour force growth."

Jobs advertised in Australia's major metropolitan newspapers increased by 13.1 per cent, seasonally adjusted, in February, while internet job advertisements rose by 19.6 per cent, seasonally adjusted, ANZ said.

The recovery in job ads is the latest indication that Australia's economy is gaining strength. Last week, the Reserve Bank raised its official interest for the fourth time in five board meetings since October as it moves to return lending costs to more normal levels after last year's economic slowdown.

The total number of job ads rose to an average of 159,778 per week in February, seasonally adjusted, just 2.3 per cent lower than in February last year. Total job ads are now 27.5 per cent higher than they were at their seasonal trough in July 2009 (125,258 ads), but they remain 42.6 per cent below the all-time peak reached in April 2008 (278,609 ads).

Newspaper job ads rose 13.1 per cent to 9947 per week in February, seasonally adjusted, while internet job ads increased 19.6 per cent to a weekly average of 149,831.

"However, a record 30.2 per cent of all jobs are now part-time (less than 35 hours per week) and despite the big surge in employed people, total aggregate hours worked across the economy remains near the level it was a year ago," said Mr Hogan.

That means that despite the official jobless figure falling to 5.3 per cent in January, under-employment persists in the Australian economy, he said.

The jobs market has been helped by surging business confidence, which increased for the second straight month in February, according to the National Australia Bank survey, also out today.

STILL BELOW A YEAR AGO

In February, total job ads were 27.5 per cent above their July 2009 seasonal trough but remain 42.6 per cent below the all-time peak reached in April 2008.

Newspaper ads increased by 22 per cent in Western Australia, seasonally adjusted, where mining and resource-related companies are rushing to add staff as projects come on line after being temporarily shelved during the global financial crisis.

South Australia's newspaper ads rose 19.5 per cent in February, while Victoria's jumped 19.3 per cent and those in New South Wales increased 14.4 per cent.

Only Queensland posted a decline of 6.3 per cent in the month.
 
"All states and territories recorded newspaper job ad levels above those of February 2009 except Queensland," ANZ said.

Even with this month's recovery, some recruiters have noted the hesitancy of companies to add staff because of fears of a potential slowdown as the government's stimulus and low interest rates come to an end.

The Australian Bureau of Statistics will update the official jobless figure on Thursday with analysts predicting the unemployment rate to remain at 5.3 per cent, with 15,000 jobs created in February.

- © Fairfax NZ News