The number of jobs advertised in Australia in January rose by the most in almost two years, new figures show.
The ANZ job ads index increased six per cent in January, easily reversing a 0.9 per cent decline in December, marking the largest rise in job ads since February 2010. It’s expected this will undercut the need for the Reserve Bank of Australia (RBA) to cut interest rates.
According to the index, internet job ads rose by 6.4 per cent in January, while newspaper ads fell 2.6 per cent for the month.
Speaking to the Sydney Morning Herald, ANZ head of Australian Economics and Property Research Ivan Colhoun said that if this month’s job ads data can be sustained over the coming months, any rise in unemployment should remain “very modest”.
“Against this local backdrop and that of a persistently weak – but not worsening – global economy, we have forecast that the RBA will need to cut interest rates by 25 basis points in the first quarter, most probably in March,” he said.
ANZ is also predicting that the RBA will its cash rate unchanged at 4 per cent when it meets tomorrow.