Jobs ads hit eight month high

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Job advertisements rose by more than five per cent in February to their largest number in eight months.

The growth in job ads comes after the unemployment rate hit six per cent in January, its highest level in a decade.

However ANZ economist Justin Fabo said more evidence was needed to support a turnaround in the labour market, as seasonally adjusted job ad figures were often volatile in the first months of each year.

Job ads rose by 5.1 per cent in February, following no movement in ad numbers in January, as tracked by ANZ’s monthly job ad series.

There was an average 131,189 newspaper and internet jobs advertised – seasonally adjusted – in February, the highest number since May, but 4.8 per cent lower than in February 2013.

Internet job ads rose 5.3 per cent for the month and newspaper job ads – which currently account for less than five per cent of the ANZ job ads – declined 0.5 per cent.

Mr Fabo said forthcoming job ads data would be important in indicating how well the economy was tracking.

“If much of the recent improvement in job ads is maintained in coming months it would support our view that economic activity will improve gradually this year,” he said.

He cited a range of positives for the Australian economy, including low interest rates, a lower Australian dollar, rising house prices and building approvals, and growing domestic spending and retail sales.

“Nevertheless, there remains considerable uncertainty around the economic outlook for this year and next, and in particular the extent to which non-mining activity can offset the drag on growth from sharply lower mining investment,” Mr Fabo said.