The number of job advertisements in May posted their largest monthly drop in more than two years as employment growth hit a soft patch ahead of an expected boom.  

The ANZ job ads index dropped 6.5 per cent last month to 194,645, which was the sharpest slide since March 2009, and followed a revised 0.4 per cent fall in April.

"The slowing in job advertisement growth in 2011 thus far has been broadly in line with slowing in employment growth," ANZ chief economy Warren Hogan said.


Newspaper job ads fell 2.7 per cent last month, marking their third consecutive monthly decline. Internet job ads - which now account for the bulk of job ads - dropped by 6.6 per cent.

Mr Hogan said May's dip in job advertising could also be overstated because of seasonal factors related to the drag on the market from the extended Anzac day and Easter holiday.

The latest jobs ads figures come ahead of official unemployment data to be released on Thursday, with the market expecting that employers added a net 25,000 jobs last month, to keep the unemployment rate at 4.9 per cent. It has been at or below 5 per cent since December.

'Concerning' result

‘‘Coming on the back of the less-than-impressive unemployment data released for April, the ANZ survey is concerning and hints that the once-robust labour market is cooling,’’ said Arab Bank Australia treasury dealer David Scutt.

‘‘Seasonal influences or not, this survey and the official statistical release have surprised on the downside over the past month,’’ said Mr Scutt.

‘‘Given the good track record this release has had in recent times, the data has to raise question marks over the labour market 'tightness’ cited by many economic commentators,’’ he said.

Although the job market remains strong by official measures, the Australian economy has had to absorb the disruption caused by massive floods in Queensland, Victoria and elsewhere this year. The high Australian dollar - reportedly marking 100 days above 100 US cents today - has also squeezed local businesses, such as tourism and manufacturing.  

Among companies cutting jobs lately are Heinz - which scrapped 300 jobs this month with the closure of factories in Queensland and Victoria - and Borders, which plans to close its remaining nine book stores in Australia with the loss of another 315 positions.  

Qantas, meanwhile, has offered voluntary redundancies to 7000 of its cabin crew, with hopes 350 staff will leave the company's payroll.  

Better times ahead

"Recent stronger investment spending data in the first quarter combined with very robust investment intentions suggest to us that the labour market will strengthen later in the year as capital investment picks up," Mr Hogan said.

"With the unemployment rate below 5 per cent and likely to remain that way or head lower over the next year, the Reserve Bank will maintain a strong tightening bias in its monetary policy," Mr Hogan said.

"We expect a further 25 basis point increase in the RBA cash rate over the next three months in response to tightening labour market conditions and rising inflation pressures."

The Reserve Bank meets tomorrow to decide on interest rates at 2.30pm with the market pricing in only a one-in-six chance of a rate rise this month.

https://www.manpower.com.au/research/white-papers.aspx

But hang on, 54% of Australian employers apparently can't find the right people...well bugger me....aint this confusing..!

Astroboy wrote on Jun 6^th, 2011 at 2:07pm:



The "right' people are the ones on 457 visa's that work for $2 an hour, bit light on at the moment are they? shame!

Quote:



They will, however, indirectly welcome the multiplier effects, when those same minimum wage earners collectively-convert their $20 a week pay rise into the means of consumption...

The rise in the minimum wage will come as cold comfort for the low-income workers condemned to a life of poverty as the rest of the nation enjoys an unprecedented economic boom, say Victoria’s shopping centre cleaners.   

Fair Work Australia today announced the results of its annual wage review, increasing the award wage for our lowest paid workers by $19.40 a week to $589.30. The ACTU had been seeking a $28 a week increase in the National Minimum Wage.

“For low-income workers, the minimum wage is a prison sentence,” says Jess Walsh, Victorian Secretary of United Voice, the Cleaners Union.   

“Companies like cleaning giant Spotless, which is one of the largest employers of low-income workers in the country, is creating an underclass of workers locked out of the prosperity the rest of the country is enjoying.”

“By insisting on paying minimum wages, Spotless is forcing cleaners to live on the edge of an abyss. Forcing them to fall behind in rent and mortgages, to fall behind in bills. Forcing them to ration groceries. Many of Spotless cleaners are shivering through these winter nights because they cannot even afford to heat their homes.”

“Often the only way for low-income workers to survive is to put basic expenses on their credit cards — and then live in fear of a knock on the door when they can’t pay it back.”   

“As the rest of country worries about interest rates and their nest eggs, low-income workers are locked out of the housing market altogether and retirement is a prospect to be feared. And that gap is just getting wider and wider.”   

“Low-income workers like cleaners are fed up with living like this,” Walsh says. “After all, companies like Spotless rely on these battlers for their enormous revenues and profits.”

“Spotless cleaners do not want to be trapped on the poverty line and are demanding the company discuss fair wages — but it won’t even come to the table,” Walsh says.

“Spotless is the only major retail cleaner that is refusing to talk with its employees,” she says.  “In fact, Spotless have been trying to cut their cleaners’ wages even further by pressuring them to sign WorkChoices-style agreements.   

“Cleaners who don’t sign face losing shifts on which they and their families rely,” she adds.
United Voice recently began a landmark legal action against Spotless, challenging the AWA-style agreements in the Federal Court.

“All of this is despite a recent agreement the company struck with its workers in the Melbourne CBD, where its cleaners are now enjoying a decent wage” she says.

Earlier this year, Spotless reported an 11.7% rise in half-year revenues to more than $1.3 billion, and said it expects full-year earnings to continue to rise.

“Spotless will tell you it can’t afford to pay more than minimum wages for the people who clean our suburban shopping centres, but it already pays CBD office cleaners $8000 a year more without any negative impact on their business.”   

Last year cleaners across Australia launched the Clean Start for Shopping Centres campaign to improve cleaning standards and overcome poverty wages in Australia’s big retail complexes.   

It follows the earlier Clean Start campaign by office cleaners, which led to improved wages, greater job security and higher cleaning standards in the CBD.