Australian job ads on the internet and in newspapers decreased by 8.1% in January, after growing 4.6% in December and 5.2% in November. January’s softening growth still represents an increase of 7.1% from the cyclical low in July 2009.2010 started with positive sentiments following 137,200 jobs being added to the labour market in the last four months of 2009. Whilst January shows a decline on December growth, economists are confident that growth will continue throughout the first half of 2010 albeit at a somewhat slower pace than first predicted.
Interestingly 30% of all jobs are now part-time indicating spare capacity amongst employees who perhaps would like to increase their hours worked. This in part can be attributed to organisations who cut hours rather than jobs throughout the 2009 slow down.
Whilst national unemployment was predicted to increase to 7%-8% less than a year ago, the job growth in quarter 4, 2009 combined with January’s most recent release means economists have revised forecasts to a high of around 5.8% at some point throughout the year (currently 5.5%). This is not only impacted by the growth of jobs but also an increase in the number of new entrants to the labour market, growing by 29,000 a month.
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