Jobs fall but rates to stay on hold
The Reserve Bank is braced for a rise in the unemployment rate and will keep its cash rate steady at 3.5 per cent at today’s board meeting in Sydney.
Market economists anticipate the official labour force survey, to be released on Thursday, will show further softening in recruitment. The number of job advertisements in newspapers and posted online has now fallen for four successive months, the ANZ said yesterday.
The ANZ’s monthly survey of job advertisements, released yesterday, shows there was a 0.8 per cent fall in July, bringing to 9.1 per cent the decline since July last year.
Online advertising has been trending lower across the country, including the resource states of Western Australia, Queensland and the Northern Territory.
The Reserve Bank has, like the government, been expecting the jobless rate would rise, calculating the new jobs being generated in the booming mining industry would not be sufficient to offset those being shed in industries like tourism and manufacturing.
The minutes of the bank’s last board meeting said the Australian economy had more momentum than expected and there was no reason to cut rates.
Stronger retail sales, rising house prices, better than expected exports and rising business borrowing — all reported last week — will give the board comfort that there is no need to vary the judgment it made last month.
However, confidence remains fragile. ANZ senior economist Craig Michaels said the level of job advertising was as much a reflection of business confidence as of the underlying trends in the Australian economy.
“Over the last 12 months or so, the number of job advertisements has been moving in line with what is happening in Europe.
“When the euro financial problems flare up; business here loses confidence and demand for workers falls away.”
The latest business survey from the Australian Chamber of Commerce and Industry underlines the loss of confidence, showing that about 20 per cent more companies expect their trading conditions to deteriorate over the course of the September quarter than those who expect an improvement.
More firms are planning to reduce their labour force over the coming three months than are planning to hire more.
- Franklin Graham Calls Out Time Magazine for Comparing Hillary Clinton to Moses
- Bereaved Israeli mother to testify in US case Against Iran and Syria
- BBC to ‘vigorously’ defend against Sir Cliff Richard
- Pastor of “Fixer Upper” Stars Chip and Joanna Gaines Says He Is Being Vilified for Beliefs
- France moves to ban pro-life websites
Smartphones and the Death of Conversation
If a few decades ago you had turned on the television and found yourself watching some drama in which the entire human race walked around utterly...
Leadership Lessons I’ve Learned from The Salvation Army’s Jim Knaggs
My friend Jim Knaggs is retiring from a long leadership career in The Salvation Army. He finishes his work as the Commissioner for the Western...
The Victims and Perpetrators of Evil
I had a conversation a couple of weeks ago with a self-described atheist who blamed his adamant disbelief in God on the abundance of evil in the...
France Bans Media Campaign Celebrating Children with Down Syndrome
Starting in 2014, the Jerome Lejeune Foundation in France, produced a short, two and a half minute film called “Dear Future Mom.” It was created...