A strong lift in job ads in June and improving business conditions suggests a positive outlook for the labour market, says the ANZ Bank.
ANZ's latest survey shows that job ads have picked up momentum, rising by 2.7 per cent in June to 175,091 compared to a 0.4 per cent lift in May.
The survey also shows that annual growth has improved, lifting 10.5 per cent in June, from 7.4 per cent the previous month.
Since the start of 2017, job ads have risen by 4.9 per cent.
ANZ's head of Australian economics David Plank says business conditions, profitability and capacity utilisation have been lifting or sitting at elevated levels for a good portion of the past 12 months.
"The strength of ANZ job ads over the first half of 2017 indicates this is translating into a positive outlook for the labour market," Mr Plank said in a statement on Monday.
Mr Plank said the strength of employment would be a key factor in stabilising, and possibly lifting, consumer sentiment, which is important for avoiding downside risks to the economy.
A strong labour market would also allow the Reserve Bank of Australia to disregard weak gross domestic product growth in the first half of this year when it reviews its forecast for the August statement of monetary policy.
Official data have shown that about 140,000 jobs were created over the three months to May, and the unemployment rate has fallen 5.5 per cent.
Mr Plank said the pace of job gains over the coming months should be closer to what is believed to be the true trend level - 15,000 to 20,000 jobs per month.
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