Drop in job ads points to slowing employment growth

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Job advertisements have declined in July, suggesting employment growth will moderate in months to come, a survey shows.

Total job advertisements on the internet and in major metro newspapers fell 0.7 per cent in July, the ANZ job advertisements survey showed on Monday. In the year to July, job ads were up 8.3 per cent.

Job advertisements partly recovered in June, after falls in May and April. But job advertisements began slowing in January and the trend turned negative from April this year, ANZ says.

The survey shows the labour market is not as tight as back in 2008, when unemployment was at 4.2 per cent, ANZ Head of Australian Economics and Property Research Ivan Colhoun said.

“The current unemployment rate is 0.7 percentage points higher at 4.9 per cent, which along with the signal from job advertising, suggests the labour market is not as tight as in 2008,” Mr Colhoun said.

Internet advertising is now 1.6 per cent lower than in January, but 9.5 per cent higher than a year ago.

Internet job ads have now declined for four consecutive months, suggesting further moderation in employment growth in the months ahead, Mr Colhoun said.