First drop in job ads in 3 months: survey
AAP, with a staff reporter
Job ads have dropped for the first time in three months signalling employment growth may be slowing down, according to a survey.
The Olivier Job Index, which gauges the number of vacant jobs advertised on commercial employment websites dropped 1.67 per cent in October following two consecutive months of growth.
Although job ads are up 4.32 per cent over three months, two consecutive interest rate rises and the expectation of more to come may slow the growth, the Olivier Group said in a statement.
"We can't help thinking that interest rate rises may have taken the edge off growth in employment," Olivier Group director Robert Olivier said.
"We've heard a lot about cautious optimism from the RBA, these figures add more caution to the optimism.
"The second two weeks in September were very strong for job ads but the rate rise and hints of more to come and combined with school holidays, may have dampened an uncertain market."
Last week, the government announced employment would peak at 6.75 per cent, down from 8.5 per cent predicted in May's budget forecast.
Despite the drop in vacant job ads, Mr Olivier said employment was still expected go grow.
"This is volatile, but we're still seeing strong growth in some sectors over recent months and we know that hiring intentions have had the sharpest quarterly rise in 10 years," he said.
Vacant jobs in nine out of the 16 industry sectors surveyed fell in October.
CommSec chief economist Craig James is predicting some positive figures ahead however, with an expected increase of 10,000 jobs for October, The Herald Sun reported.
Mr James said the overall peak in the jobless rate was expected to be somewhere around six per cent.
The Olivier survey found that the biggest gains by job type were in advertising and media, transport and banking up 3.87 per cent, 3.17 per cent and 3.05 per cent respectively.
Banks have been anxious to hire permanent staff, partly to take pressure off overworked employees.
It was a bad month for people looking for legal jobs, particularly positions for solicitors, falling 13.64 per cent.
Hospitality and travel suffered from the strong Australian dollar, falling 3.35 per cent while building and construction jobs fell 2.73 per cent.
The recent 0.4 per cent fall in retail sales in the September quarter also impacted jobs in sales and marketing falling 3.88 per cent.
Mr Olivier said job ads may rise again going into the new year as employers begin recruiting.
"If people want staff for the new year they'll be starting to recruit now," he said.
"Traditionally job seekers return to the market in large numbers in the new year, but the smart candidates will be looking now."
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