Job ads rise for second straight month

Job ads on the internet and in newspapers rose 0.3 per cent in July, taking growth for the year to 4.2 per cent for the year, figures from ANZ show.

Job advertisement numbers have risen for the second month in a row, but that is not expected to translate to a fall in unemployment in the coming months.

Job ads on the internet and in newspapers rose 0.3 per cent in July and were up 4.2 per cent for the year, figures from ANZ show.

Job ads in June climbed 4.4 per cent after a 5.5 per cent fall in May.

Demand for new staff is on the rise, albeit at a moderate pace, ANZ chief economist Warren Hogan said.

"This is broadly consistent with ANZ's view of a relatively gradual pick-up in economic activity," he said.

Although retail spending slumped in April and May, consumer confidence should recover from its federal budget-related slump, which will boost spending, Mr Hogan said.

June retail figures, released on Monday, showed stronger than expected growth in spending.

"In addition, the international backdrop is becoming more supportive, with Chinese growth improving after a soft patch earlier this year and the pick-up in growth momentum in the US is likely to benefit Australia, not least through a weaker Australian dollar," he said.

"That said, Australia's key commodity prices remain on a downward trend and the falling terms of trade will continue to provide a medium-term headwind on growth."

RBC Capital Markets head of economics Su-Lin Ong said jobs growth was still sluggish, and does not expect the unemployment rate to fall significantly from six per cent any time soon.

"The data are consistent with our long held view of an unemployment rate that is sticky around current levels and likely to persist well into 2015," she said.

"Accordingly, today's data remain consistent with our base case for the cash rate to remain on hold for an extended period."

Official jobs figures for July will be released on Thursday, with the unemployment rate expected to stay steady, according to an AAP survey of 15 economists.


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