Job advertisements fall but still up on a year ago

By BRIAN FALLOW

Job advertising levels fell in July. Seasonally adjusted they were 1.8 per cent lower than in June, partially retracing a 5.6 per cent rise between May and June.

But advertising levels were still 2.9 per cent higher than in July last year and, at more than 30,000, remained high enough to indicate continued employment growth - albeit at a more moderate pace than in the past couple of years, said ANZ chief economist David Drage.

Auckland job ads fell 3.5 per cent, after a 5.7 per cent rise in June. They were 1.7 per cent ahead of a year ago but still 14.8 per cent off their peak in March 1996.

Employment grew 2 per cent in the year ended June, enough to push the unemployment rate to a 15-year low of 4.7 per cent.

"Clearly expectations that labour market pressures would ease as the economy slowed in 2003 have yet to be realised," Drage said.

This also showed up in the Institute of Economic Research's June quarterly survey of business opinion, which found that shortages of both skilled and unskilled labour had not abated to any great extent, he said.

Industries related to the strong housing market had benefited from strong growth in demand.

But Drage said the agriculture and manufacturing sectors had softened as the stronger New Zealand dollar hit export industries.