Job ads up despite shock July jobless rate

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Rising job ad numbers suggest the labour market is improving, despite the shock jump in July’s unemployment rate.

Job ads rose 1.5 per cent in August and were up eight per cent over the year to date, according to ANZ’s monthly job ads report.

The growth comes after a surprise rise in joblessness in July, when unemployment hit a 12-year high of 6.4 per cent.

ANZ chief economist Warren Hogan said a number of key indicators were suggesting a very gradual improvement in the jobs market.

“Recent trends in job advertising are consistent with a gradual turnaround in the labour market,” he said.

“Importantly, these developments appear to jar with the surprise jump in July’s unemployment rate to 6.4 per cent and suggest recent labour market conditions are steadily improving.”

Mr Hogan expects the unemployment rate will remain above six per cent for several months before gradually falling.

“On the one hand, strengthening labour demand in some labour intensive industries, such as in construction, health and retail, is an encouraging sign,” he said.

“However, the effect on employment from the wind back in mining investment is likely to have further to run, which will be a hindrance to a strong improvement in the unemployment rate over the next year or so.”