Job advertisements fell for a second consecutive month in May, according to the latest results of the ANZ Job Advertisements series.
Total newspaper and internet ads fell by 6.5%, although they are both 8.5% above the level recorded at the same time last year. Newspaper ads fell by 2.7% as internet ads dropped by 6.6%.
ANZ chief economist Warren Hogan said the result was impacted by the late timing of the Easter and Anzac Day holidays, but also noted employment growth has continued to fall as well.
“The slowing in job advertisement growth in 2011 thus far has been broadly in line with slowing in employment growth,” he said. “We have seen many monthly economic indicators impacted by seasonal factors related to ANZAC day and Easter falling closely together this year.”
“We suspect the recent dip in job advertising could be overstated because of this.”
Hogan also said the job ads figures were similar to those seen in 2010, and that it expects unemployment to remain at 4.9% when data is released on Wednesday.
“Recent stronger investment spending data in Q1 combined with very robust investment intentions suggest to us that the labour market will strengthen later in the year as capital investment picks up,” Mr Hogan said.
“We expect the unemployment rate to gradually trend down over the year ahead.”
A private gauge of inflation rose 0.2% in May, resulting in an annual inflation rate of 3.3% – above the 2-3% target band sought by the Reserve Bank.
However, the result comes after a 0.3% increase in April, suggesting the rate of inflation may be easing, although pressures still remain.
The TD Securities-Melbourne Institute pointed to a 0.2% rise in May. Fruit and vegetables recorded the biggest price rise, up by 3%, rent increased by 1.5% and fuel prices rose by 0.5%
Balancing the price increases were decreases for travel and accommodation, alcohol and tobacco and appliances.
And while the trimmed mean measure of underlying inflation was flat, with the annual pace at 2.4%, TD Securities says more rate rises are on the way.
“The signal from our Inflation Gauge is that the trough in annual inflation is clearly in the rear view mirror,” TD Securities head of Asia-Pacific research, Annette Beacher said in a statement.
“We remain of the view that inflation pressures are set to accelerate into 2012 with the terms of trade continuing to rise and ongoing lack of spare capacity in the labour market.”
The Australian sharemarket has opened lower this morning following a weak result from Wall Street last week where investors were spooked after the release of particularly weak unemployment data.
The benchmark S&P/ASX200 index was down 26 points or 0.57% to 4558.9 at 12.10 AEST, while the Australian dollar remained flat at $US1.07c.
AMP shares lost 0.2% to $4.96, while Commonwealth Bank shares gained 0.44% to $49.73 as ANZ lost 0.61% to $21.24. Westpac shares also fell 0.33%.
Clive Palmer has pulled his $3.6 billion Resourcehouse float from the Hong Kong stock exchange yet again.
It is the fourth time in two years the Queensland mining multi-billionaire has abandoned a public offering of the company.
Palmer blamed poor market conditions for the withdrawal of Resourcehouse from the HKEX.
“The Dow, Standard and Poor’s 500 and Nasdaq composite have all declined in the last five weeks, the longest losing streak since mid-2008”, the company’s chief financial officer, Raymond Lim said in a statement yesterday.
It was expected the float of the company would raise funds for the development of a 40-million-tonne-a-year thermal coal mine in the Galilee Basin in central Queensland.
Palmer said the company was in good shape and was confident of further business opportunities in Asia.
“Emerging economies like China and India will continue to be the key engine of global growth, with positive implications for the demand of thermal coal, iron ore and other natural resources,” he said.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
