Australian Job market: Job advertisements in Australia experienced a notable upswing in April, countering declines observed in the preceding two months, according to recent data released on Monday. The uptick in job ads, as indicated by figures from the Australia and New Zealand Banking Group (ANZ) in conjunction with employment website Indeed, registered a 2.8 per cent increase from March, following a 1.0 per cent decline during that period.

Compared to the corresponding month last year, however, job ads exhibited a 6.6 per cent decrease, albeit remaining substantially elevated at 36.5 per cent above pre-pandemic levels. This trajectory suggests a gradual moderation in labour market tightness.

The Reserve Bank of Australia (RBA) has responded to inflationary pressures by implementing interest rate hikes, amounting to 425 basis points since May 2022, bringing rates to 4.35 per cent. Nonetheless, the persisting indications of labor market resilience may prolong the duration of elevated interest rates, aimed at steering inflation back toward the target range.

Market indicators, such as swaps, suggest a 42 per cent likelihood of another interest rate hike by the RBA to 4.6 per cent by September.

Madeline Dunk, an economist at ANZ, remarked on the current trend, noting a halt in the downward trajectory of ANZ-Indeed Job Ads in 2024. She highlighted a 3.9 per cent increase since the recent trough in November of the previous year and emphasized the steady three-month moving average in recent months. Dunk pointed out that imbalances between labour market supply and demand are yet to normalise.

The data revealed that while healthcare job advertisements experienced a decline in April, this was counterbalanced by broad-based gains across other sectors.

(With Reuters inputs)