Job advertisements have grown to an 18-month high during July, with newspaper ads beginning to increase after three consecutive months of decline, the latest ANZ monthly survey reveals.
The total number of job ads grew by 1.3% to a seasonally adjusted 171,685 per week, although this number is down from the 2.8% growth recorded during June.
The Job Advertisements Series is now 36.1% higher than at the same point in 2009, but are 38.2% below the all-time high in April 2008.
Newspaper ads grew by 1.2% in July, boosting its yearly growth to 14.5%. Internet job ads rose by 1.3% in July, and are now up by 37.6% from the same point last year. ANZ economist Warren Hogan said in a statement the results once again demonstrate Australia’s solid economic performance.
“Australian employers still appear upbeat about Australia’s economic prospects despite heightened external risks,” Hogan said.
“Indeed, while July has seen some moderation in the growth of total job advertisements it is encouraging to see that, in contrast to the last three months, both newspaper and internet job advertisements increased in July.”
“It is also encouraging to see that job advertising is picking up across the regions. In July, newspaper job advertisements rose across all states and territories except for Queensland and Tasmania. This contrasts with the previous two months, when job advertisements fell in six out of eight states and territories.”
Hogan points to the upcoming Labour Force data, saying it will show some easing in new job creation.
“We are expecting jobs growth of around 20,000 this month. With the participation rate sitting at 65.2%, this would see the unemployment rate remain steady at 5.1%.”
“The relatively low June quarter inflation result instead suggests the RBA can afford to wait and see how the Australian and global economies continue to evolve. We still see September quarter inflation (released in October) as the next likely trigger for further policy tightening. We continue to look for the RBA to lift its cash rate to 5% by year-end.”
Meanwhile, housing finance figures have continued to fall, with the value of total dwelling commitments dropping 1.9% to a seasonally adjusted $20.7 million in June. Owner occupied finance fell 1% to $13.3 million, with investment loans dropping 3.6% to $7.3 million.
The number of dwelling commitments has also fallen, with commitments for the construction of new dwellings dropping 4.5%, and commitments for new dwellings down 4.5%. Finance for owner occupied housing and the purchase of established dwellings have also fallen 3.9% and 3.7% respectively.
Shares open flat after mixed Wall Street lead
The Australian sharemarket has opened flat today, following a mixed lead from Wall Street last week where investors were discouraged by poor jobs data, but boosted by solid corporate results.
The benchmark S&P/ASX200 index was up 14 points or 0.31% to 4580.4 at 12.20AEST, while the Australian dollar opened higher at US91c.
ANZ shares lost 0.2% to $23.00, while Commonwealth Bank shares gained 0.4% to $52.79. Westpac rose 0.1% to $23.64 as AMP gained 1.5% to $5.50.
Bendigo and Adelaide Bank has recorded a massive net profit increase from $83.8 million to $242.6 million – although it says expectations for the next year are softened by global volatility.
Cash earnings were up 59.7% to $291 million, while total revenue was up 30% to $1.14 billion. In a statement, managing director Mike Hirst said the bank’s outlook is mixed.
“The effects of the GFC continue to dominate market sentiment, and will likely cloud the outlook for the 2010-2011 financial year,” he said.
“However, this uncertainty and volatility also presents opportunities for a business like ours with a respected brand, growing customer base and proven track record for opportunistic and value creating M&A activity.”
Also in the banking sector, the Australian Competition and Consumer Commission has said it has started market consultation on NAB’s proposal to acquire AXA Asia Pacific Holdings.
“The ACCC now seeks views from market participants to assist its consideration of the undertakings and of IOOF as a proposed purchaser of the divestiture business, and to determine whether the proposed divestiture would be likely to alleviate the ACCC’s competition concerns,” the ACCC said in a statement.
The consultation is an attempt to stifle the ACCC’s fears that an acquisition would reduce sector competition. However, the ACCC has continued to say it will not make a comment before it makes a decision.
Fairfax to consider board review
The Australian has reported the board of Fairfax media will meet later this month to discuss a report reviewing the company’s current management structure.
The report, compiled by consultants Bain & Co., reportedly contains a number of recommendations on options including paywalls, and the leadership of its print and online operations.
Meanwhile, Rio Tinto will continue to invest in Australia, with capital spending to reach $13 billion over the next 18 months, due to solid demand for iron ore from China.
Chief executive Tom Albanese told Sky News Business a large proportion of that $13 billion will be directed towards Australia.
“We’re very, very well positioned and it does allow us to begin and continue to invest in the future of Rio Tinto, and also invest in the future of Australia and the Australian mining industry,” he said.
“A large portion of that is going to be driven by what we see as a strong, long-term positive trend for Asian demand, Chinese demand of products that we produce.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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