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Analysts at ANZ bank explained that the Aussie Job ads recovered some ground in January but not enough to fully offset the upwardly revised 5.7% drop in December.

Key notes

ANZ Australian Job Ads increased by 3.8% in January 2020 following a 5.7% fall in December 2019. Over the year, Job Ads were down 11.8% y/y. In trend terms, Job Ads declined 1.2% m/m and 14.0% y/y.

There have been some positive signs for labour demand recently. ABS Job Vacancies rose in November following two quarters of decline and the employment index in NAB’s monthly business survey has stabilised above the long-run average. The unemployment rate has fallen to 5.1% in December from 5.3% in October while participation has been stable.

However, the bushfires and coronavirus will likely have a negative effect on the labour market, along with economic activity, over the coming months, particularly for tourism-related industries.

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