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A fall in the number of job advertisements could push the Reserve Bank (RBA) to cut the official cash rate again in the coming months.
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Job advertisements are now close to 30 per cent below their most recent peak at the end of 2010 and just 8 per cent higher than the lowest level recorded during the global financial crisis.
Speaking about the results, ANZ’s chief economist Ivan Colhoun said downward trends in job advertising have been reliable indicators of lower interest rates and, unfortunately, of rising unemployment.
“The continuing downward trend for advertising suggests the RBA will further reduce interest rates in coming months. ANZ expects a further interest rate cut in November this year and sees the balance of risks being for further interest rate reductions in 2014, notwithstanding the fact that a declining Australian dollar is now also providing useful stimulus to the Australian economy,” he said.
