Employment growth is slowing in Australia. Photo / Thinkstock
Employment growth is slowing in Australia. Photo / Thinkstock
Job advertisements in Australia have fallen for the third month in a row, in a sign that employment growth will slow in the coming months, a survey shows.
Total job advertisements on the internet and in metro newspapers fell by 2.1 per cent in September, the ANZ job advertisements surveyshowed yesterday.
In the year to September, job ads were down 3.1 per cent.
ANZ head of Australian economics and property research Ivan Colhoun said employment growth is easing at a slow rate.
"Moderating job advertising points towards a further softening in employment growth in the months ahead and a modest rise in the unemployment rate," Colhoun said.
"To date, the weakening trend for job advertising is more like the 1995-96 experience, rather than the sharp slowdown during the global financial crisis in 2008-09, or even the more significant slowdown [of] 2000-01."
Colhoun said the softening labour market gives the Reserve Bank of Australia a reason to cut the cash rate from its current level of 4.75 per cent.
"In line with a rising unemployment rate, wages and underlying inflation pressures are likely to moderate," he said.
"Accordingly, there is scope for the RBA to reduce interest rates a little as insurance against weaker than expected growth outcomes and even higher unemployment."
He said the ANZ is expecting an interest rate cut at the RBA's November board meeting. Colhoun said the ANZ is expecting the unemployment rate to rise to 5.5 per cent by mid-2012, from its current level of 5.3 per cent.
Internet job advertisements were down 2.2 per cent in September, but were still 4 per cent higher than a year ago.
Job ads in newspapers were flat in September and were 12.8 per cent lower than 12 months ago.
