Unemployment settles at 5.1 per cent

by 10 Nov 2010

Job ads showed only a modest 0.6 per cent increase in October, as Australia’s unemployment rate looks likely to remain at 5.1 per cent.

According to the latest ANZ Job Advertisements Series, the number of job ads stands at an average of 179,040 per week.

ANZ Head of Australian Economics Ivan Colhoun, this is the sixth consecutive monthly rise in total job advertisements, although the pace of growth is moderating.

“The October rise was driven by a 0.6 percent improvement in the number of internet job advertisements. In contrast, newspaper jobs advertisements experienced a second-consecutive monthly decline, falling 0.3 per cent and have fallen in five of the past seven months,” Colhoun said.

The total number of job advertisements remains 35.6 per cent below the all-time peak reached in April 2008, just prior to the Lehman Brothers collapse in September 2008.

Colhoun added: “While the pace of employment growth has accelerated in recent months, statistical analysis combined with recent trends in business surveys and in the economy’s largest industries (including retail trade and construction) suggests that this pace of growth is set to moderate.

“In particular, full-time employment will likely cool following two consecutive monthly increases of above 55,000. We also expect a dip in the participation rate following September’s surge and this will likely see the unemployment rate remain steady at 5.1 per cent.”

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