Early Signs of Cooling in Australia’s Job Market Are Emerging

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By James Glynn

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SYDNEY–Tentative signs are emerging of a slowdown in hiring in Australia as firms adjust to souring input costs and the fastest rise in interest rates in 30 years.

Job placement company SEEK said Thursday that job ads fell 3.1% in July, following a fall in June of 4.4%.

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“The consecutive monthly declines may be the first signs of labor demand peaking at elevated levels,” said Taylor Nugent, economist at National Australia Bank.

Nevertheless, SEEK job ads are still 60.6% above prependemic levels, while applications per job are down 29% from a year earlier, he added.

Declines were broad-based across industries, with 24 out of 30 subsectors seeing consecutive monthly falls, the SEEK data showed.

The largest decline in job ads in July was again in the hospitality and tourism industry, which showed a decline of 30% in July after a drop of 10% in June.

Consistent with activity peaking in home building and the impact of higher interest rates biting, industries associated with housing also saw sizable falls in July.

The Reserve Bank of Australia has raised its official cash rate by 175 basis points in a little under 1,000 days as it moves at speed to get on top of the biggest inflation problem in a generation.

The RBA expects inflation to peak at around 8% in 2022 before easing through 2023 and 2024.

Write to James Glynn at [email protected]com

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Credit: www.marketwatch.com /

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