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ISCOVER
Staff Reporter
The Reserve Bank of Australia is widely expected to keep the cash rate on hold when it meets later today, after job advertisements fell slightly in August.
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According to the latest ANZ Job Advertisement Series, advertisements on the internet and in newspapers decreased by 0.6 per cent in August – the fourth monthly decline in five months.
Newspaper job ads fell by 3 per cent month on month, while internet job advertising decreased by 0.5 per cent.
Newspaper advertising is now 15.6 per cent lower than a year ago, while internet advertising is now 7.3 per cent higher over the same period.
But while advertisements have fallen, ANZ chief economist Warren Hogan said the declines were modest, which suggests a soft patch for Australian economic growth associated with stagnant employment conditions rather than a sharp slowdown that will drive a rapid rise in unemployment.
“ANZ has recently reviewed its employment forecasts and expect the unemployment rate to continue to drift up to around 5.25 per cent to 5.5 per cent over the next 12 months,” Mr Hogan said.
“At this stage we do not believe the RBA will see this as a trigger for an easing of monetary policy. Inflation pressures remain and the uplift in mining and construction activity will cap the rise in unemployment in 2012.”
