Job ads begin making up ground after last year's fall

By NZPA

Thursday 11th July 2002

Job hunters had slightly better prospects in June when job advertisements placed in major New Zealand newspapers rose by 0.3 percent.

Job advertising levels were almost 8 percent lower than at the same time last year, according to ANZ's monthly Job Ads series. However, job ads have begun picking up this year after a fall in the second half of 2001, ANZ chief economist David Drage said.

"With the exception of Christchurch, job advertising levels have resumed their upward march during the first six months of 2002.

"At close to 30,000 per month, job ads are running at levels consistent with further employment gains. As a consequence we could see a sub-5 percent unemployment rate during 2002 for the first time since March 1988, although much will depend on the impact of immigration and the labour force participation rate," Mr Drage said.

The participation rate is the proportion of the working age population that is either in employment, or is actively seeking employment.

Employment grew by 3.50 percent in the year ended March 2002, and the unemployment rate of 5.3 percent is hovering above the 13-year low of 5.2 percent last year.

The dip in job advertising last year was partly due to migration inflows, which eased some of the pressure on the tight labour market, reducing the need for re-advertising, Mr Drage said.

Strong employment growth in the six months to March was matched by an increase in labour supply.

In June, the regions to record a rise in job ads were Waikato (up 4.2 percent), Manawatu (up 4.2 percent), Wellington (up 1.1 percent), Christchurch (up 1.0 percent), and Otago (up 0.5 percent).

Otago job ads are at their highest since the series began in June 1994.

Job ads in Auckland papers fell 0.2 percent, and Hawke's Bay ads dropped 4.1 percent.

The ANZ Internet Job ads series rose by 9.4 percent, although it is at 17 percent below its peak in June 2001.

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