Australian job gains show confidence in Australian economy

The survey also indicated that there will be a decline in the unemployment rate in Australia.

Job advertised on the internet and in newspapers had declined in April by 1.2 percent, the report by Australia & New Zealand Banking Group Ltd stated. In May, job ads in newspapers declined by 6.5 percent while internet job ads in Australia went up by 5 percent in the same month, making way for a yearly increase of 22.3 percent seasonally adjusted.

An annual increase in the number of ads was 21.7 percent with average number of advertisements per week were 167,633, the figures compiled by ANZ show.

Employers have affirmed their interest and confidence in Australian economy although the fiscal policy during the first half of the year has been tightened. So, the overall outlook for the Australian economy looks optimistic although the decline in the newspaper job ads in the month of May conveys that a few businesses have begun to take a cautious stand, said Katie Dean, a senior economist of ANZ, Melbourne.

It may be possible that as employment growth overtakes output growth during the first half of 2010, a few firms in Australia will slow down the recruitment of new workforce till the growth in activity spurs up.

Meanwhile, Governor of Central Bank Glenn Stevens did not introduce any change in the interest rates which remained at 4.5 percent even after increasing the benchmark lending rate by almost six times since October last year.

The official jobless figures of Australia to be released today are likely to show that unemployment rate did remain quite stable in the month of May at 5.4 percent with no changes since March 2010. There is an indication that nearly 20,000 new jobs were added in Australia in the month of May.

It is expected that the RBA will increase its cash rate to nearly 4.75 percent by the month of September and further to 5 percent by the month of December, stated Ms. Dean.