Job advertising points to slowing growth

Job advertising picked up last month, partially retracing a fall in March.

ANZ Bank's job ads series rose 2.2 per cent in April, adjusted for seasonal effects, but remains 4.4 per cent lower than a year ago.

ANZ chief economist David Drage said job advertising had been on a gradual downward trend so far this year but remained at levels consistent with continuing employment growth, albeit at a more moderate rate than in the past couple of years.

Friday's official employment data, the household labour force survey, bore that out. Employment grew 0.5 per cent in the March quarter, but the annual increase slowed to 1.5 per cent compared with a peak of 3.5 per cent in the year to March 2002.

"The housing market and related industries have benefited from strong growth in demand, particularly in the Auckland region, fuelled in part by net immigration," he said.

"This has been reflected in a sharp increase in employment in the construction sector and solid increases in employment in the wholesale trade, retail trade and services sectors. Nevertheless some of the heat is expected to come out of the property market in 2003 as immigration slows. This will dampen activity."

Auckland job ads rose 4 per cent in April, partly retracing a 10.2 per cent decline over the previous two months.

"Despite some volatility in recent months job ads in the region have held on to the solid growth recorded during 2002 and are 3.2 per cent above those prevailing 12 months ago," ANZ said.

Waikato job ads rose 1.7 per cent, ending six months of decline, but are still 12.8 per cent lower than a year ago.