Unemployment data sparks rate talk

By webmaster

There could be scope for the Reserve Bank to cut interest rates again very soon, as unemployment gets set to rise.

According to the latest ANZ job advertisement data, job advertisements on the internet and in newspapers decreased by 0.7 per cent in October, the sixth fall in seven months.

Annual growth in total job advertisements slowed to 1.8 per cent year on year.

Speaking about the results, ANZ head of Australian economics and property research Ivan Colhoun said the weakness in both internet and newspaper advertising suggests below trend growth in employment and a gradual rise in the unemployment rate over coming months.

“Trends in job advertising are again beginning to reflect the emergence of a more noticeable geographic split to Australian economic growth. The trend in job advertising remains positive for Western Australia, the Northern Territory and Queensland (the states with the greatest exposure to mining). At the same time, advertising is continuing to slow in the more populous states of NSW and Victoria,” he said.

“ANZ expects the unemployment rate to rise to 5.5 per cent by mid-2012. This forecast is consistent with employment growth of less than 5,000 jobs per month.

“In line with a rising unemployment rate, wages and underlying inflation pressures are likely to have begun moderating. As such ANZ believes there is continued scope to ease interest rates towards a ‘neutral’ stance from the ‘more neutral’ stance at present. ANZ expects a further 25 basis point cut in the cash rate in February 2012.”

Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
BLUE BAY 49.18%
Unemployment data sparks rate talk
SPI logo