ANZ says the ‘worm has turned’ for job market
The Australia and New Zealand Banking Group (ANZ) says the “worm has turned ” and employment trends now look positive.
Total job advertising in New Zealand rose by 4.5 per cent in October, seasonally adjusted, suggesting unemployment will continue to fall in the coming quarters, ANZ said.
The rise in October followed a 1.3 per cent lift in September, ANZ said. The ANZ’s job ads index is 9.75 per cent higher than a year ago.
In a report headlined “the worm has turned”, ANZ said the upward trend in job advertising was more definitive.
Newspaper ads rose 6.1 per cent, building on a strong rise in September, and internet ads rose 4.2 per cent, their fifth consecutive monthly increase. The level of internet ads was 11.9 per cent higher than a year ago. Regional numbers were volatile but internet ads rose in all three main centres.
Newspaper advertising increased in three out of seven regions, most dramatically in Auckland, ANZ said.
“The economic expansion in the second half of this year is looking assured, but a strengthening labour market, not just a booming house market, is required to make the upturn sustainable,” ANZ said.
“This data suggests the unemployment rate will continue to decline over coming quarters,” ANZ said.
According to Statistics NZ, the unemployment rate fell by 0.2 per percentage points in the September quarter to 6.2 per cent.