Slide in job ads resumes

By Phil Boeyen, ShareChat Business News Editor

Wednesday 13th February 2002

Job advertising levels are on their way down again after a brief reprieve in December.

The ANZ Job Ads series, which takes data from the major newspapers throughout New Zealand, shows the number of ads fell 2.3% in January to be 16.2% below the peak in July 2001 and 9.6% below the level for January last year.

Figures show the decline in advertising levels in recent months is widespread and is evidenced by marked falls in Auckland, Wellington, Christchurch and Otago job ads since mid-2001.

ANZ chief economist David Drage has reiterated comments made last month that a reversal in net migration flows appears to have eased some of the pressure on the labour market, reducing the need for employers to re-advertise positions.

"Inward migration and a surprisingly sharp lift in the labour force participation rate goes part of the way to explaining the fall in job advertising levels.

"Nevertheless, we believe a drop-off in the number of job advertisements of the magnitude recorded in recent months will eventually be reflected in official employment numbers."

However Mr Drage says this will not necessarily result in a sharp lift in the unemployment rate.

"While we believe employment will ease in the March or June quarters, there could equally be a retracement of the sharp lift in the labour force participation rate recorded in the December quarter which would dampen the impact on unemployment."

The ANZ Internet job ads series was down for the fourth consecutive month, falling 21.8%, the largest fall in its 22 month history.

The bank says that during the past seven months the series has retraced all of the gains made through to its peak in June 2001 and is now below the levels prevailing when ANZ started measuring Internet job vacancies in April 2000.

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