Australian job ads surge 7.4% in November as economy recovers

SYDNEY Reuters - Australian job advertisements surged in November after the lifting of coronaviruses lockdown measures saw demand for labour spike in Sydney and Melbourne, a sign of a rapid recovery in the economy.

In November, total job ads jumped 7.4% from October, while they had already gained 7.5%, according to the figures from Australia and New Zealand Banking GroupNew Zealand Banking Group Ltd.

That left adds 52% higher than a year ago, at 222,093, and a lofty 44% increase on pre-pandemic levels.

ANZ senior economist Catherine Birch said that a rebound in official employment figures was likely after a surprise 46,300 drop in October and a rise in the unemployment rate to 5.2%.

Birch believes that the unemployment rate should drop below 5% in the near term, and we expect it to fall to around 4% by the end of 2022 and even further in 2023. Underemployment is likely to be much lower. The Reserve Bank of Australia wants to drive unemployment down to 4% or even lower in the hope of lifting wage growth after years of tepid gains.

The central bank holds a policy meeting on Tuesday and is widely considered certain to keep its policy interest rate at a record low of 0.1% and reiterate its outlook for no hikes until at least 2023, as per the central bank's December policy meeting.