Auckland surge leads job ads in 1.6pc rise

Newspaper job advertisements rose by 1.6 per cent last month, retracing a 1.3 per cent fall the previous month.

But despite the turnaround, advertising levels were still 5.9 per cent lower than a year earlier, the ANZ Jobads series shows.

ANZ chief economist David Drage said the monthly rise was driven by a resurgence in Auckland job advertising levels, as the domestic economy began to take up the slack from the waning export sector.

Auckland recorded a 4.2 per cent rise in advertising levels during the month, reversing falls in the previous three months.

"Buoyed by low interest rates and a boost to its population from migration, the Auckland economy has gained considerable momentum," Drage said.

The Auckland job ads series is now at a similar level to 12 months ago, although it is still below the peak hit in December 1999.

At a national level, job ad numbers are now running at more than 30,000 a month - consistent with further employment gains.

ANZ is picking the unemployment rate will fall below 5 per cent during the second half of this year, from the 14-year low of 5.1 per cent at present.

Hawkes Bay was the only other region to record an increase during the month, adding 1.4 per cent to the 5.6 per cent increase in the previous month.

Wellington job ads edged down 1 per cent in August, Otago job ads declined 0.7 per cent and Waikato job ads were down 0.3 per cent for the month.

Christchurch job ads fell by 2.2 per cent last month after a 2.3 per cent fall in July. Job ads in Christchurch have fallen away sharply after peaking in July last year, reflecting the changing dynamics of the economy.

"As the benefits to the provincial economies from the tailwinds of the 2000-01 agricultural export boom have begun to wane, job advertising levels in the provinces have started to plateau and in the case of Christchurch have fallen away sharply," Drage said.

But the bank remained cautiously optimistic about the outlook for the rural sector.

"While world dairy prices have fallen sharply during the past 12 months, they now appear to have stabilised."

The ANZ internet job ads series fell by 9.9 per cent last month, bringing to an end six consecutive increases in the series.

- NZPA