The latest ANZ Job Ads index dropped 0.5 per cent m/m in April but remained 57.3 per cent above the pre-pandemic level.
“Labour market conditions are very tight, as confirmed by the 3.7 per cent increase in newly lodged job ads (or 10,200 new job ads) in March recorded by the National Skill Commission’s Internet Vacancy Index,” ANZ head of Australian economics, David Plank said.
Another employment report, this time by SEEK, showed that job ads increased in 26 of 28 industry categories in March, with hospitality and tourism roles registering the greatest growth.
In March, employment rose by 18,000, below market expectations of 30,000. The participation rate remained stable at its record high of 66.4 per cent and the unemployment rate declined to 3.95 per cent, its lowest since 1974.
However, a lot of people were still struggling to find work, the long-term unemployment rate was relatively high at 1 per cent, despite the record-high number of job vacancies recorded by the Australian Bureau of Statistics in February.
Mr Plank said this showed that even with a very strong labour market there are areas that need attention.
“We expect strong labour demand to lead to solid employment gains in the coming months,” he said. “We see the unemployment rate dropping well below 4 per cent in the second half of 2022, which should reinforce the momentum toward higher wages growth.”
With the economy almost at full employment and inflation running hot, the Reserve Bank of Australia (RBA) is expected to hike interest rates from record lows of 0.1 per cent at either its May or June policy meetings.
The bank’s board meets on Tuesday (3 May) and speculation is high it will lift rates to 0.25 per cent at the start of a tightening cycle that investors wager could see rates at 2.5 per cent by the end of the year.
