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Job advertisements in Australia rose in September
Top Story Monday October 5 , 2009 01:32 GMT
A report today showed that job advertisements in Australia inclined during September for the second consecutive month giving signs that the nation's labor market is healing from the consequences of the worst financial crisis since World War II.
Job advertisements in Australia inclined by 4.4% during August compared with a previous incline by 4.1%. Today's report showed that vacancies advertised in newspapers and on the Internet averaged 136,070 a week during September.
Moreover, newspaper advertisements climbed 3.7% to reach an average of 8,929 a week, while internet advertisements climbed 4.5% to reach an average of 127,141 a week. Total advertisements fell 44.9% from a year earlier in September, while newspaper advertisements declined 41.3% from a year earlier and internet notices fell 45.1% in September from a year earlier.
Conditions in the Australian labor market deteriorated since the beginning of the financial crisis last year till the unemployment rate reached 5.8% in June, then conditions stopped worsening and the jobless rate remained at the same level during July and August that could be considered as an improvement amid worsening conditions in other major economies.
However, Mr. Glenn Stevens, the governor of the Reserve Bank of Australia, said last month that unemployment won’t reach the forecasted levels, having in mind that Treasurer Wayne Swan said that jobless rate my climb to 8.5% by 2011. On the other hand, Stevens said that unemployment rate may peak 6.0% which he considered a low peak amid rising unemployment rates around the world.
On the other hand, the RBA said that jobless rate inclined less than forecasted and the effect on consumer spending was less than expected amid low energy and raw materials prices around the world and, in addition to easing inflation.
The Australian government allocated as much as A$20 billion as cash handouts for households that helped to ease the negative effect of rising unemployment. The government's cash handouts helped to spur demand and consumer spending which helped the economy to avoid technical recession and to expand in the second quarter.
The Australian economy expanded 0.6% during the second quarter backed by rising consumer spending and improving exports, worth mentioning that the Australian economy was one of few major economies that managed to avoid technical recession when it grew 0.4% in the first quarter.
Monetary policy makers in Australia decided to keep interest rates steady at the low record of 3.00% which is the lowest in 49 years to support economic growth. The RBA said that borrowing costs will be raised at a specific stage as the economy is rebounding. Yet, a continuous improvement in the labour market along with advancing exports and other economic sectors may pressure the bank to raise interest rates soon.
Finally, the Australian business sector found its way out of the world recession after demand from China and other economies increased which was why demand for workers inclined leading to better conditions in the labor market. We may see the nation's unemployment rate declining in the upcoming period especially that the economic activity is advancing.
PLEASE NOTE:
Since this article was written the unemployment rate for September has reduced to 5.7%, and the reserve bank has confirmed its confidence in the recovery of the Australian economy and has raised the official interest rate by 0.25% to 3.25%
Please feel free to contact me on email: Jenese Malone
See detailed article on house shortages in Australia here...
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