"Each of the monthly job ads series fell in May, which in the context of the recent deterioration in consumer confidence, could be an indication there has been a budget effect on business confidence"
-Warren Hogan, ANZ chief economist
Australian job advertisements have bounced back in June following a sharp fall a month earlier, when spending cuts and tax increases announced in the federal budget limited business hiring intentions. The rebound in advertised job opportunities added to signs the country's labour market has begun to improve amid Australia's economic transition. Job ads rose 4.3% month-on-month after the 5.6% decline in May, according to the ANZ data, driven by a 4.5% jump in internet job ads, whereas newspaper job ads fell 2.3%.
Last year advertised job opportunities tended to be weaker, indicating Australia's during a transition in the resource sector from robust investment over the last decade to now much lower levels of investment. Policy makers have attempted to spur economic growth in non-mining sectors of the economy by embarking on accommodative monetary policies, bringing interest rates to record low. Last week the RBA decided to keep the key policy rate unchanged at 2.5% and reiterated that a period of stability in interest rates is needed to bolster sustainable growth in demand. The central bank also stressed that it would likely be some time before the unemployment declined consistently. The Australian Bureau of Statistics is due to release labour market data for June on Thursday, which is projected to show the jobless rate climbing to 5.9% from 5.8% a month earlier.
© Dukascopy Bank SA