Australian jobs figures slide biggest in 4 months

SYDNEY - Australian job advertisements fell 12.1 per cent in April, pointing to a further easing in the pace of employment, although yesterday's data showed the fall was heavily distorted by the timing of holidays.

The Australia and New Zealand Banking Group said on release of its job ads survey that hiring intentions may also have been affected by the Iraq war and the impact of the Sars epidemic on tourism.

The seasonally adjusted fall was the largest in four months, wiping out increases since the start of the year. Compared to a year ago, job ads fell 17.2 per cent to their lowest level since January 1994.

Other data released yesterday showed March building approvals rising by a stronger-than-expected 4.7 per cent when forecasts had centred on an increase of just 1 per cent.

Commonwealth Bank of Australia chief economist Michael Blythe said: "Leading indicators like building approvals and housing finance numbers are at or slightly beyond the trough, and clearly fit in with the idea that a soft landing now looks more likely, and not the crash landing on the construction side. .

"If we see approvals level out where they are, given the amount of work in the pipeline, dwelling construction will be contributing to GDP for a while yet," he said.

Australia's housing market has cooled since late last year after a two-year boom.

The ANZ job ads data was distorted by Easter falling in the same week as the Anzac Day holiday.

ANZ chief economist Saul Eslake said: "Even abstracting from the likely impact of the unusual proximity of the Easter and Anzac Day breaks, the April result appears to point to some further easing in pace of employment in coming months."

Employment fell by 55,100 in February and March, but this followed gains of 225,000 over the preceding four months, which Eslake said overstated the underlying pace of employment growth.

The Government's April labour force data is released on Thursday.

"Weaker jobs growth could see the unemployment rate drift up towards 6.5 per cent in the next few months, although the extent of the rise will depend on whether the participation rate remains around the current elevated levels," said Eslake.

He said the Government's forecast of 6 per cent unemployment may now be hard to achieve in the June quarter, but even in the event of further significant falls in employment in the remaining months to June, the forecast of 1.75 per cent employment growth for the year will be attained.